A proprietary colony was a type of English colony mostly in North America and in the Caribbean in the 17th century. In the British Empire, all land belonged to the monarch, and it was his/her prerogative to divide. Therefore, all colonial properties were partitioned by royal charter into one of four types: proprietary, royal, joint stock, or covenant. Under the proprietary system, individuals or companies were granted commercial charters by the monarchs of the Kingdom of England to establish colonies. These proprietors then selected the governors and other officials in the colony.

This type of indirect rule eventually fell out of favor as the colonies became established and administrative difficulties eased. The English sovereigns sought to concentrate their power and authority and the colonies were converted to Crown colonies, i.e. governed by officials appointed by the King, replacing the people the King had previously appointed and under different terms.