BBC Worldwide, the broadcaster's commercial arm, has launched Inversion Records, which is already understood to have signed Argentine guitarist Dominic Miller.
Although Worldwide is separate from the public service arm, any profits from the label -- and other commercial ventures -- are ploughed back into the BBC and programme making.
Critics are concerned that the label may be able to influence BBC radio and TV stations to give BBC brands preferential treatment.
Speaking in an interview yesterday on Radio 4, shadow culture secretary John Whittingdale warned that the BBC should be subject to tighter regulation over what commercial business it is allowed to enter.
"However much the BBC say there's an arm's length relationship between itself and its commercial division, it is worth asking why a state-owned broadcaster has any business getting involved in an area where commercial companies already fill the market."
Responding to the comments, BBC Worldwide chief executive Rupert Gavin said BBC Worldwide has no influence over BBC playlists, according to reports.
Whittingdale's criticisms follow the news last week that the Tory party has appointed former Channel 5 chief executive David Elstein to head a taskforce to investigate whether the BBC should show advertising.
The review is likely to pave the way for a Tory manifesto pledge at the next general election to cut the £112-a-year licence fee. A reduced fee, or direct Treasury funding, would safeguard the BBC's public service commitments and it would be partly funded by advertising or subscription.
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