Dutch in the beginning traded Indian goods form Portuguese and then towards the Indonesian islands of Java and Sumatra and the Spice Islands where the spices were produced in order to increase trade.A Dutch man named Cornelius Houtman sailed to Sumatra in 1596. Soon, many trading companies were formed in Holland. In the year 1602, all these companies joined together into a single company called the United East India Company of the Netherlands. This company was also called the Dutch East India Company.

Dutch colonial possessions, with the Dutch East India Company`s possessions surround the Indian Ocean. The Dutch East India Company (Vereenigde Oostindische Compagnie Or VOC in Dutch, literally "United East Indies Company") was established on March 20, 1602, when the Estates-General of the Netherlands granted it a 21-year monopoly to carry out colonial activities in Asia. It was the first multinational corporation in the world and it was the first company to issue stocks. It remained an important trading concern for almost two centuries, until it become bankrupt and was dissolved in 1798. The Dutch East India`s Company`s purpose was not only trade; the Compagnie also had to fight the enemies of the Republic and prevent other European nations from entering the east India trade. During its history of 200 years, the VOC became the largest company of its kind, trading of spices like nutmeg, cloves, cinnamon and pepper, and other consumer products like tea, silk and Chinese porcelain.