The singer has received backing from Sony to establish the label and is in the process of hiring staff.

The Sun reports that Allen is also receiving a £100,000 salary from Sony, which won a bidding war over other labels to back the star.

In The Name Of's first signing are the New York group, Cults.

Allen's latest move comes after she announced last year that she planned to take a break from music. She also recently set-up the clothes store, Lucy In Disguise.

As previously reported, the singer announced over Christmas that she had got engaged to boyfriend Sam Cooper.

(by Jason Gregory)