It was set up by Portuguese colonial authorities in the late 19th century, but was taken over by the Government of Goa and continues to play a role in the state's cultural activities.

[3] Around that time, there was a need for an institute focusing on literary, scientific, and cultural themes, and a new Portaria (provincial order 105 dated 10 February 1925 and Legislative Diploma or enactment No.144 of 26 March 1925) was passed, with an annual grant of Rs.10,000.

In 1997, in a step which was questioned by some, the Government of Goa took over the institution,[4] and re-established it as a society.

The Bombay High Court dismissed the petition against the takeover of the institute, but expressed "a hope that the respondent- State [Government of Goa] shall maintain artifacts and/or paintings and/or coins and/or other valuable articles and shall make all attempts to preserve Portuguese culture for future generations.

"[3] The institute's stated aims are to "focus mainly on the promotion of activities in the fields of Language, Literature, Art & Culture in Goa".