Agency meaning : The capacity, condition, or state of acting or of exerting power. The capacity of individuals to act independently and to make their own free choices. A medium through which power is exerted or an end is achieved. The office or function of an agent; also, the relationship between a principal and that person's agent. An establishment engaged in doing business for another; also, the place of business or the district of such an agency. A department or other administrative unit of a government; also, the office or headquarters of, or the district administered by such unit of government.