The foundation of Punjab State historically referred to the Sikh Empire or Lahore Darbar and extraordinary efforts of Maharaja Rajit Singh of Gujranwala. This empire was a regional power that existed from 1799 to 1849 by establishing Lahore as capital after defeating Durrani emperor Zaman Shah Durrani. This empire was established in the result of Treaty of Friendship between Ranjit Singh and East India Company and demolished by East India Company itself after the second Anglo-Sikh War of 1849. This empire was formed by Khalsa autonomous misls and was extended towards north in unbelievable pace. This empire was on peak during 1838-1840, when its borders extended to Gilgit at northern side, Tibet on northern east, Khyber Pass in south, Oudh in East and recognized among the one of biggest autonomous State in Indian Subcontinent with 4.5 million people and considered 19^th most populous State in the world. The Formation of Lahore Darbar or Sikh Empire based upon great conspiracy of East India Company which was their strategic move against Czar and Napoleon. That move was tactically declared by Britin thinktanks “Ring French Policy” in which they used Maharaja Ranjit Singh by providing sovereignty, creating ring around their occupied areas and pushed back Czars and Nepoleon. This paper aimed to explore the secrets and hidden British channels behind the formation of Sikh Empire and its implication on Kashmir, Subcontinent and territory of the Punjab.