Allow Mages to take Jobs and earn Jewels
Generally, there are three different types of Guilds: Legal, Dark, and Independent.
A Legal Guild is one that has been approved and registered by the Magic Council while a Dark Guild is one that has not been approved by the Magic Council and is treated as a criminal organization. An independent guild is one that is not approved by the Magic Council, but at the same time is not considered a criminal organization. Very little has been shown about independent guilds, though it appears that they can do whatever they can as long as the Magic Council doesn’t disapprove of them.
In general, guilds are formed for Mages to take Jobs and earn Jewels, and also for them to train and grow stronger. Legal Guilds also work to defend against Dark Mages and other criminals; this can go the same for Independent Guilds, as well.
The main power in the Kingdom of Fiore is the King and his Government.
Under his order is the Magic Council, which enforces rules over the guilds to uphold lawful employment of Mages and other forms of employment while making sure they do not cause trouble. When Guilds cause destruction or other disturbances to the peace, it’s the responsibility of the Magic Council. The Council is made up of very powerful Mages, some of whom have the power to legalize or disband Guilds.
Legal Guilds are under recognition by the Magic Council and are all connected to one another. Guild Masters are members of a Local Guild Master League and they meet at various meetings. There is more than one league, and during the meetings they have fun and talk about their own guilds.
The hierarchy within Guilds typically ranks from the most powerful to the weakest. From top to bottom, it starts with Guild Master, S-Class Mages, and then Mages. There are usually many teams formed within guilds; these teams are composed of various members of their Guild and can vary in strength.
A Guild Master is a Mage who is the head of the guild that he or she is affiliated with. Typically, Guild Masters are very powerful, often being the strongest Mage in their guilds. Occasionally, they are even members of the Ten Wizard Saints, as with the case of Makarov. As the heads of their own respective guilds, they virtually have complete authority over their subordinates, and can thus dictate their actions. As such, they are also able to excommunicate members of their guilds or even reappoint them as an official member, as seen with Laxus.
An S-Class Mage is a powerful Mage that is recognized by the Guild Master and is able to undertake S-Class Jobs. The jobs they take are so dangerous that even the simplest mistake can cost them their life. However, the pay for S-Class Jobs is good. The overall strength of S-Class Mages differs from guild to guild. In some instances, an S-Class Mage is considered the strongest within their respective guilds, as with the case of Jura.
Mages are simply users of Magic that are able to undertake Jobs. Regular Mages are not allowed to undertake S-Class Jobs unless they are under the supervision of an S-Class Mage. However, it is possible for them to become an S-Class Mage. Fairy Tail’s guild is known to have a special tournament to decide whether or not a Mage can be promoted. No other known events have been seen or mentioned with other guilds.