The French East India Company (French: La …

Years: 1664 - 1664

The French East India Company (French: La Compagnie française des Indes orientales or Compagnie française pour le commerce des Indes orientales), a commercial enterprise, is founded in 1664 to compete with the British and Dutch East India companies.

Planned by Jean-Baptiste Colbert, it is chartered by King Louis XIV for the purpose of trading in the Eastern Hemisphere.

It results from the fusion of three earlier companies, the 1660 Compagnie de Chine, the Compagnie d'Orient and Compagnie de Madagascar.

The first Director General for the Company is François Caron, who had spent thirty years working for the Dutch East India Company, including more than twenty years in Japan.

The first state-sponsored French voyage to the Indies had occurred in 1603, a voyage captained by Paulmier de Gonneville of Honfleur.

French king Henry IV had authorized the first Compagnie des Indes Orientales, granting the firm a fifteen-year monopoly of the Indies trade.

This precursor to Colbert's later Compagnie des Indes Orientales, however, was not a joint-stock corporation, and was funded by the Crown.

The initial capital of the revamped Compagnie des Indes Orientales is fifteen million livres, divided into shares of one thousand livres apiece.

Louis XIV funds the first three million livres of investment, against which losses in the first ten years are to be charged.

The initial stock offering quickly sells out, as courtiers of Louis XIV recognize that it is in their interests to support the King’s overseas initiative.

The Compagnie des Indes Orientales is granted a fifty-year monopoly on French trade in the Indian and Pacific Oceans, a region stretching from the Cape of Good Hope to the Straits of Magellan.

The French monarch also grants the Company a concession in perpetuity for the island of Madagascar, as well as any other territories it can conquer.

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