He was the son of the reigning Count Frederick of Bentheim und Steinfurt (1703–1733) and his wife Countess Franziska Charlotte of Lippe-Detmold (1704–1738).

His father died young and Charles Paul Ernest became Head of the Bentheim-Steinfurt family in 1733.

Initially, he had to share power in the territories of Steinfurt and Alpen with his great-uncle Statius Philip (1668–1749).

His Hofmeister Johann Christoph Buch accompanied him on several long journeys to perfect his foreign language skills.

In 1749, his great-uncle and regent Statius Philip died, and Charles Paul Ernest took up the business of government.