A lady's companion was a woman of genteel birth who lived with a woman of rank or wealth as retainer. The term was in use in the United Kingdom from at least the 18th century to the mid-20th century but it has become archaic. The profession is known in most of the Western world. The role was related to the position of lady-in-waiting, which by the 19th century was applied only to the female retainers of female members of the British royal family. Ladies-in-waiting were usually women from the most privileged backgrounds who took the position for the prestige of associating with royalty, or for the enhanced marriage prospects available to those who spent time at court, but lady's companions usually took up their occupation because they needed to earn a living and have somewhere to live. A companion is not to be confused with lady's maid, a female personal attendant roughly equivalent to a "gentleman's gentleman" or valet, who would often be from a more working class background.
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Lady's companion in the context of Lady-in-waiting
A lady-in-waiting (alternatively written lady in waiting) or court lady is a female personal assistant at a court, attending on a royal woman or a high-ranking noblewoman. Historically, in Europe, a lady-in-waiting was often a noblewoman but of lower rank than the woman to whom she attended. Although she may either have received a retainer or may not have received compensation for the service she rendered, a lady-in-waiting was considered more of a secretary, courtier, or companion to her mistress than a servant.
In some other parts of the world, the lady-in-waiting, often referred to as palace woman, was in practice a servant or a slave rather than a high-ranking woman, but still had about the same tasks, functioning as companion and secretary to her mistress. In courts where polygamy was practiced, a court lady might have been formally available to the monarch for sexual services, and she could become his wife, consort, courtesan, or concubine.