The Colonial empires were a product of the European Age of Exploration (or Age of Sail) that began with a race of exploration between the then most advanced maritime powers, Portugal and Spain, in the 15th century. The initial impulse behind these dispersed maritime empires and those that followed was trade, driven by the new ideas and the capitalism that grew out of the European Renaissance. Agreements were also done to divide the world up between them in 1479, 1493, and 1494.

Portugal began establishing the first global trade network and empire under the leadership of Henry the Navigator. Portugal would eventually establish colonial domains from Brazil, in South America, to several colonies in Africa (namely Portuguese Guinea, Cape Verde, São Tomé and Príncipe, Angola and Mozambique), in Portuguese India (most importantly Bombay and Goa), in China (Macau), and Oceania (most importantly Timor, namely East Timor), amongst many other smaller or short-lived possessions (see Evolution of the Portuguese Empire).