Asafo companies and regiments began as militia groups that imitated European military groups, particularly Dutch ones, that sailed along the coast. Each Asafo is under a "warlord" or Tufohene, who was under an Omanhene or Paramount King. They have since evolved into community-based social groups.

Asafo companies and regiments are also known for their flags, which can be symbols of a company's values or historical events. The flags are often made of cotton, silk, rayon, or velvet and can be as small as 3 by 5 feet or as large as 300 feet. Company members collaborate with workshops to decide on the flag's composition, colors, and statement. The flags often feature depictions of people, animals, and objects that reference proverbs or historical events, or make a statement about the company. For example, one flag might feature two people pointing objects at a tortoise and snail, which could refer to the Akan proverb, "If the snail and tortoise were the only animals in the forest, the hunter would have no need to carry a gun". This would convey the message that the use of arms isn't always necessary.