Indigo Public Affairs will operate from the company’s Edinburgh HQ when it is launched next week.
The three-strong public affairs arm will be headed by Indigo MD Jacqui Low.
Former Consolidated Communications account director Alex Orr, currently account director at Indigo, will also move to the public affairs division, retaining his job title.
The new division will be unveiled in the Scottish Parliament on 1 March.
Orr said the agency division was currently securing a number of launch clients, but he was unable to reveal their identities.