Salah

The British domains of India did not fall directly under the control of the Crown until 1858, in the aftermath of the famous Mutiny. Until then, British India had been controlled by the Honorable East India Company, divided into the three presidencies of Bombay, Bengal, and Madras.

Why did Britain spend two and a half centuries ruling its Indian possessions indirectly, through a merchant company and the world's largest mercenary army?

Belgarion

It was more profitable and convenient to do so. The HEIC ran India as a profit making business, covered all the costs of administration that the crown would normally incur and paid tax to the British government. A win all round for government and business, until business lost control and the British government had to take direct action to resolve the situation.