A charter is a document that gives colonies the legal rights to exist. Charters can bestow certain rights on a town, city, university, or other institution.
Colonial charters were approved when the king gave a grant of exclusive powers for the governance of land to proprietors or a settlement company. The charters defined the relationship of the colony to the mother country as free from involvement from the Crown. For the trading companies, charters vested the powers of government in the company in England. The officers would determine the administration, laws, & ordinances for the colony but only as conforming to the laws of England. Proprietary charters gave governing authority to the proprietor, who determined the form of government, chose the officers, and made laws subject to the advice and consent of the freemen. All colonial charters guaranteed to the colonists the vague rights and privileges of Englishmen, which would later cause trouble during the American Revolution. In the second half of the 17th century, the Crown looked upon charters as obstacles to colonial control and substituted the royal colony for corporations and proprietary governments.