Real Compañia De Filipinas

Compañia Real de Filipinas or the Royal Company of the Philippines was established in March 1785 by a royal decree. Its' purpose was to promote direct trade between the Philippines and Spain. In addition, it was established to exploit the natural resources of the islands.

Compañia Real de Filipinas had monopoly on the trading industry and it opened a large access to goods from the orient which were imported locally into the island. It gain a lot of oppositions in the Philippines and abroad. It however reduced its monopoly rights as the company began to grow and competitions among other companies became fierce. It was originally financed with 32,000 shares of 250 pesos each (5,000 reales), the company counted among its shareholders the King and many major banks. The company then later issued bonds to raise capitals. It absorbed the assets of the Barcelona Company.

The tensions between Spain and England negatively affected the operations of Compañia Real de Filipinas. From 1796, it never again prospered. In 1834, the company was abolished by the Spanish crown due to poor management and financial losses.