A chartered company is an association formed by investors or shareholders for the purpose of trade, exploration, and colonization.

The Colonized regions which were colonized by Europe in Africa and Asia, almost all of them become chartered companies which belonged to the Western colonial masters.

The chartered company administrated all the business affairs of the colonized region.

Business with limited abilities:

The citizens of the colonized region were only allowed to have businesses that went under a limited company with limited abilities. Such a company was not allowed to trade internationally.

A limited company could only trade locally, the taxes which that limited company was obligated to pay, they were all collected to benefit the interests and vision of the chartered company.

Every item which was traded on an international level coming from the colonized region, that item had to go through the chartered company to be able to reach the international market.

Imposing of tax:

The taxes which were imposed on the people under the rule of indirect rule and direct rule, these taxes and tax collectors were always a signed and put into force by the Colonial leadership.