The company was established after and five other merchants received permission to negotiate relations between India and China for a period of a decade. However, the Lisbon Earthquake of 1755 caused great damage to both the company's newly acquired ships and goods stocked in Lisbon. Subsequent scandals involving Feliciano's son and the Marquis and a failure to repay loans to the Portuguese monarchy led to the bankruptcy of both the company and Feliciano, its main shareholder in 1760.