The Company, or Confraternity, was created to publicly represent, and protect the trading rights, of the merchants of the royal burgh of Edinburgh.

In 1681, the king responded by granting a charter creating the Merchant Company of Edinburgh,[3][1] which was ratified by the Parliament of Scotland in 1693.

Following the improvements linked to the construction of South Bridge their building was refronted around 1790 when it was newly faced onto Hunter Square.

[1] The company decorated its hall with 119 animal skins of Black Spanish leather stamped with Gold markings and turned an adjacent waste ground into a bowling green.

[5] Carola Young later Macaulay was a milliner trading in Edinburgh who paid an annual fee to the company.

[clarification needed] Nevertheless the company continued to play an active role in issues affecting the city, and it flourished.

The company wished to consolidate and preserve its position, and took advantage of this; in fairly short order, the hospitals were transitioned to be principally day schools in 1870.

[10][11][12][14] In 1879, the company moved to its current location on Hanover Street, taking over the former premises of the City of Glasgow Bank which had failed.

The company was granted the title "Royal" by Her Majesty Queen Elizabeth on 11 December 2017, during the Master-ship of Donald S. F. Young.

It holds social and networking events and continues to manage the substantial charitable and educational foundations under its care.

The immediate past Master of the Royal Company of Merchants is granted the ancient title of Lord Dean of Guild.