The Dutch Republic, surprised by such easy gains in the East, quickly decides to exploit Portugal's weakness in the Americas.

The Dutch government and private commercial companies form the Dutch West India Company (Dutch: Geoctroyeerde Westindische Compagnie or GWC; English: Chartered West India Company) in 1621, primarily to secure the supply of sugar for member companies and colonize regions favorable for sugar plantations.

Among its founding fathers is Willem Usselincx (1567-1647?).

The GWC is on June 3, 1621,  granted a charter for a trade monopoly in the West Indies (meaning the Caribbean) by the Republic of the Seven United Netherlands and given jurisdiction over the African slave trade, Brazil, the Caribbean, and North America.

The area where the company is chartered to operate consists of West Africa (between the Tropic of Cancer and the Cape of Good Hope) and the Americas, which include the Pacific Ocean and the eastern part of New Guinea.

The intended purpose of the charter is to eliminate competition, particularly Spanish or Portuguese, between the various trading posts established by the merchants.

The company is to become instrumental in the Dutch colonization of the Americas.