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A Royal Charter is a charter granted by the Sovereign on the advice of the privy council, to legitimize an incorporated body, such as a city, company, university or such. In medieval Europe, cities were the only place where it was legal to conduct commerce, and Royal Charters were the only way to establish a city. The year a city was chartered is considered the year the city was "founded", irrespective of whether there was settlement there before. A Royal Charter can also create or give special status to an incorporated body. It is an exercise of the Royal Prerogative.