The 29-year-old popstar has joined forces with her own label Capitol, to launch Metamorphosis Music.
The 'Roar' singer has already announced the first artist signed to her label too, LA based singer/songwriter Ferras Alqaisi.
In a joint announcement, Katy said on Twitter last night: "I am so ECSTATIC to finally announce my NEW label Metamorphosis Music & my first signing, the incredibly talented & soulful FERRAS!"
Ferras will now be joining Katy on her 'Prismatic World Tour' later this month and his latest self-titled EP was executive produced by Katy herself.
It's a big business move for Katy, who has become one of the best selling solo artists since her breakthrough in 2008.
Katy's managed to notch up eight number one singles in the US Billboard charts, and in 2011, she tied Michael Jackson's record by achieving five number one singles from the same album, Teenage Dream.
Katy recently completed the UK leg of her tour and will embark on the North American leg starting on 22 June.
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Watch Katy's video for 'Birthday' below: