The new division is to be based in the Leeds' Calls Wharf development and will be headed up by directors Steven Wood, Matt Leese and Jonathan Milner.
Milner said: "For a long time now Leeds and the surrounding area has been a focal point for a lot of the most interesting developments in our sector.
"Leeds is a natural home for the company as both packaging graphics skill sets and key national and international brand owners can be found here."
Wood, Leese and Milner all have vast experience of providing packaging graphics solutions to national and international businesses.
Steve Parish, chief executive of Tag, said: "A central part of our strategy is to provide solutions for all of our clients' marketing requirements, to this end I have been looking for the right opportunity in the Packaging and POS sectors.
"Our research showed that two key factors were essential to make this a success; one was to have a single technology platform across all disciplines and the other was to have dynamic management who could look at the sector in a refreshing way.
"Starting from scratch means we can instantly provide an integrated global solution and in Steven Wood, Matt Leese and Jonathan Milner, we have a team who have the passion, expertise and enthusiasm to bring impact and success to the packaging pre-media sector."