page_title: Swedish East India Company
section_title: The Royal charter
hierarchical_section_title: Swedish East India Company / Establishing the SOIC / The Royal charter
caption_attribution_description: English: First page of the permission from his Royal Majesty to Commissarien Hindrich König and the Swedish East India Company to conduct trade on the East Indies.
context_page_description: The Swedish East India Company was founded in Gothenburg, Sweden, in 1731 for the purpose of conducting trade with China and the Far East. The venture was inspired by the success of the Dutch East India Company and the British East India Company. This made Gothenburg a European center of trade in eastern products. The main goods were silk, tea, furniture, porcelain, precious stones and other distinctive luxury items. Trade with China saw the arrival of some new customs in Sweden. The Chinese cultural influence increased, and tea, rice, arrack and new root vegetables started appearing in Swedish homes.
  It grew to become the largest trading company in Sweden during the 18th century, a total of 132 expeditions were carried out with 37 different ships. The company folded in 1813, nevertheless, it left clear footprints that can still be seen in Gothenburg.
context_section_description: The charter was given to Henrik König & Compagnie and consisted of eighteen precise paragraphs on how the trade should be conducted:
  The company would have the right to all trade and shipping east of the Cape of Good Hope as far as Japan excepting the port factories of other European nations, unless free consent had been obtained in advance.
  All departures and arrivals should be out of Gothenburg, and cargo was to be auctioned promptly in Gothenburg on arrival.
  The Swedish state was to receive 100 riksdaler per läst (c. 2.5 tonnes) and two riksdaler per läst to the city of Gothenburg, on each shipment, plus taxes.
  The company could use as many vessels it wanted, but they were to be built and outfitted in Sweden unless something occurred that made is necessary to buy material from other countries.
  The ships were to fly the Swedish flag and carry Swedish ships' papers.
  The company was free to use as much money as needed for the expeditions and were entitled to issue shares to finance the venture.
  The company was forbidden to bring Swedish coined silver in or out of the country. They were however allowed to trade with any other kind of silver.
  Once the ships were loaded for departure and when they returned, they were free to enter any port in Sweden.
  All the equipment, armament goods and stores needed for the company were exempted from Swedish customs.
  Goods from the ships were considered prioritized, and could be transported or stored toll-free on any road or in any town.
  The company's officers would have the same authority as Swedish naval officers.
  The crew were exempted from service in the Swedish military.
  The company's officers had the right to arrest and detain anyone in the crew who tried to desert or run away.
  When the cargo from the ships had been sold, the buyers should not have to pay any extra fees for the goods.
  The board of the company should always consist of at least three directors.
  The company was free to employ as many men needed for the ships. They could be Swedes or foreigners, as long as they were the most skilled.
  The company had the right to defend itself, to "oppose force with force".
  The company was enjoined to maintain secrecy on finances and shareholders.
  The issuing of shares was such that early subscribers subscribed for each voyage and had the option of withdrawing their capital after its completion, in a traditional form of corporate trading partnerships; in 1753, this having been found inconvenient, it was determined that capital should be considered invested in the company as a whole, on the model of other East India companies. A partner desiring to withdraw his funds was responsible for finding another willing to substitute capital of his own.
  The reasons for secrecy on finances and shareholders were both internal and external: British citizens were forbidden to engage in trade on Asia and within Sweden suspicions ran high against foreigners, as they were thought to siphon off Sweden's riches. Jealousy from merchants not in the company also played a part. Thus, the books were burned after they had been closed and revised, effectively concealing the company's dealings from contemporaries and historians.
  The letter of privilege was translated into French and Latin and distributed to the major powers. Their reaction was reluctant and they made clear that they considered the new company a most unwelcome competitor. The Swedish ambassador to Britain did not even dare to present the letter to the British government. Pledges of assistance at their bases if needed were not answered. France and the Netherlands declared that they saw Sweden as a competitor and they would not contribute to or assist in such a venture.
caption: The royal privileges for the SOIC, 14 June 1731
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