The Kingdom of Fiore (which is Italian for "Flower") is a stable neutral country with a population of 17 million. It is a peninsula that is connected to the land on the east.
Fiore is governed by the council which regulates and overlooks just about every activities for guilds and such, including Fairy Tail. Under it's law any illegal activities will punished by the council. Legal guilds such as Fairy Tail can accepts jobs from various clients and gets rewarded. If the guild becomes fail to do so the guild becomes illegal and gets branded as a dark guild.