Although the Company was becoming increasingly bold and ambitious in putting down resisting states, it was getting clearer day by day that the Company was incapable of governing the vast expanse of the captured territories. Opinion amongst the members of the British Parliament urged the government to control the activities of the Company. The Company's financial position was also bad and it had to apply for a loan from Parliament. Seizing this opportunity, the Parliament passed the Regulating Act (also known as East India Company Act) in 1773. The act set down regulations to control the Company Board and created the position of the Governor General. Warren Hastings was appointed the first Governor-General. In 1784 Pitt's India Act made the Company subordinate to the British Government.

The next few decades were of rapid growth and expansion in the territories controlled by the British. The Anglo-Mysore Wars of 1766 to 1799 and the Anglo-Maratha Wars of 1772 to 1818 put the Company in control of most of India. In a sign of the early resistance against the English control, the Palayakkarar chieftains of the old Madurai Kingdom, who had independent authority over their territories, ran into a conflict with the Company officials over tax collection. Kattabomman, a local Palayakkarar chieftain in the Tirunelveli district, rebelled against the taxes imposed by the Company administration in the 1790s. After the First Polygar War (1799–1802), he was captured and hanged in 1799. A year later, the Second Polygar War was fought by Dheeran Chinnamalai, by winning three wars against British after the fall of tipusultan kingdom at last he and his two brothers was illeagelly hanged and Dheeran Chinnamalai was the last Tamil king died in the war against Britishers and was put down by the Company after a long and expensive campaign. The end of the Polygar Wars gave the British complete control over a major portion of Tamil Nadu.

In 1798 Lord Wellesley became the Governor-General. In the course of the next six years Wellesley made vast conquests and doubled the Company's territory. He shut out the French from further acquisitions in India, destroyed several ruling powers in the Deccan and the Carnatic, took the Mughal Emperor under the company's protection and compelled Serfoji, the king of Thanjavur to cede control of his kingdom. The Madras Presidency was established so that the territory under direct Company control could be administered effectively. The direct administration began to cause resentment among the people. In 1806 the soldiers of the Vellore cantonment rebelled when William Bentinck, the Governor of Madras decreed that the native soldiers should abandon all caste marks. Fearing this act to be an attempt of forceful conversion to Christianity, the soldiers mutinied. The rebellion was suppressed but 114 British officers were killed and several hundred mutineers executed. Bentinck was recalled in disgrace.

Anglo-French conflicts
Pandyas
British Government control
Vijayanagar and Nayak period (1300–1650)