The term Carolinas was used to refer to the entire area between Virginia Colony and the Spanish Collonies of Florida.
Permission to form a colony was granted by Charles II in 1663 as a revenue making exercise. A settlement was formed in Charles' Town (modern day Charleston) in 1669.
Being so large, the Carolinas were divided administratively in 1691 into North and South Carolina. This was formalised in 1729.