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At the point of time when the East India Company (henceforth referred to as EIC) came into being, there was some major political unrest in the country. The once-powerful Mughals had now shrunk to a tiny and badly ruled kingdom. Although the country was once completely ruled by the Mughals, due to the irresponsibility of the great rulers' coming generations, the country had been split up into many small kingdoms ruled by different royal families.
There was a great deal of suspicion between these royal families, and so civil war was prevalent.
The EIC took advantage of this political unrest, civil war and lack of unity.