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1) Is your capital in Africa?
2) Do you own Wealth of Nations and have it enabled?
3) Is your nation western tech?

Not sure what else it might be as I haven't played with them yet but I know any of those three things will preclude it.
 
bump...i recently annexed territory on the indian subcontinent, but the option to form trade company is grayed out...

http://imgur.com/ZvErXTy

edit: notice i have a cored province in ceylon, what throws me off is that i do have provinces in indus connected by land to my capital, but some land not contiguous with the capital in indus...

/shrug
 
Isnt Byzanitum eastern? IIRC it is a western only feature.

Problem is, it's not documented anywhere that Trade Companies are limited by tech-group. I only found this out after playing a very weird Ottoman game where I took exploration with the intent of colonising all of the African and Indonesian islands before the Euros showed up, only to then be told by the button that Ottoman tech-group isn't allowed to have them. I can understand Muslims and lower not having them, but why not other tech-groups with their capital in Europe?