The villa was built in 1907 by Anna Pauli, the daughter of Johan Wilhelm Smitt [sv], the wealthiest man in Sweden in the 19th century.
The villa, designed by famous architect Ragnar Östberg, was richly decorated with works by the painter Georg Pauli and sculptor Carl Eldh.
In 1985 the villa was acquired by the real estate magnate Birger Gustavsson, who converted into a club for corporate members that opened September 1986.
Arnfinn Röste [sv] bought the club in 1998 and upgraded and redecorated it, including interior decoration featuring antiques, original art and sculptures.
Many companies use the Villa Pauli Club as a venue for an event, fashion show or product launch.