As with The Trades House, the Merchant's House was formed as a result of a Letter of Guildry in 1605, which regulated both the city's craftsmen (in the form of The Trades House), and its merchants (in the form of Merchant's House).

Between 1605 and the present day the Merchants' House has resided in several locations, moving into the building at the northwest corner of George Square in 1877, where it has remained.