The major expenses of the East India Company were:
- Salaries and wages: The Company employed a large number of people, including sailors, soldiers, administrators, and merchants. The salaries and wages of these employees accounted for a significant portion of the Company's expenses.
- Transportation costs: The Company used ships to transport goods between Europe and Asia. The cost of building and maintaining these ships, as well as the wages of the sailors who operated them, was a major expense.
- Taxes and duties: The Company paid taxes and duties to the various governments in the countries where it operated. These taxes and duties could be significant, especially in countries where the Company had a monopoly on trade.
- Bribes and gifts: The Company often had to pay bribes and gifts to government officials and local leaders in order to secure favourable trading conditions. These bribes and gifts could be a substantial expense.
- Military costs: The Company maintained a private army to protect its trading posts and ships. The cost of maintaining this army, including the salaries of the soldiers and the purchase of weapons and supplies, was a major expense.
- Interest on loans: The Company often borrowed money from banks and other lenders in order to finance its operations. The interest on these loans could be a significant expense.
The East India Company was a profitable enterprise, but it also faced a number of challenges, including competition from other European trading companies, the rise of nationalism in Asia, and the increasing cost of doing business. The Company was eventually dissolved in 1874.