The Berlin-based label will specialise in neo-classical, jazz and electronic music.
Scottish composer Craig Armstrong, producer Robot Koch and composer Meredi are among the first signings.
Modern Recordings will be led by Christian Kellersmann, who will serve as senior vice president of new classics and jazz, reporting to BMG EVP global repertoire and marketing Fred Casimir. Kellersmann previously worked at Universal Music in Germany, running its 'Recomposed' series which included Max Richter's acclaimed reworking of Antonio Vivaldi's The Four Seasons.
Christian Kellersmann said: 'The first releases show the breadth of ambition of Modern Recordings. We will give international musicians a home to realize extraordinary projects. Across borders. Across genres. Across boundaries. We see a great opportunity to offer such artists all the benefits of BMG’s global approach to records.'
Fred Casimir added: 'Christian Kellersmann is a pioneer in the development of new classical and jazz music and Modern Recordings is a significant addition to our family of labels. We will support artists in this exciting new international market, which – thanks to streaming – has grown significantly in the last couple of years and offers further great potential.'
Albums planned for 2020 include Conference of Trees by Pantha du Prince and The Next Billion Years by Robot Koch.