The British had bribed mughal officials into granting rights of three cities, Gobindapur, Sutanuti and Kalikata to the British East India Company in the year 1651. The British built a factory and ware house there where goods for export were stored and many offices were built where company officials sat. This became the base for the company's trades known as factors.
The British secured mughal officials' consent to grant rights to three cities – Gobindapur, Sutanuti, and Kalikata – in 1651. The British then set up a factory and warehouse where they stored export goods and built offices for their representatives. This became the starting point for the company's commercial activities.