New Amsterdam was a 17th-century Dutch settlement established at the southern tip of Manhattan Island, which served as the seat of the colonial government in New Netherland. The factorij became a settlement outside of Fort Amsterdam. Situated on the strategic, fortifiable southern tip of the island of Manhattan, the fort was meant to defend the Dutch West India Company's fur trade operations in the North River (Hudson River). It became a provincial extension of the Dutch Republic as of 1624 and was designated the capital of the province in 1625.