A company in the business of making films. Production companies develop projects, or in some cases, when they also own filmmaking equipment and stages, like a movie studio they produce their own films; it is however more common that the production comany is an umbrella organization for several film producers and companies that rent facilites and equipment to produce selcted projects. (see also Film Producer).

Most German production companies, for example are small or medium sized businesses with only one prinicipal executive, the film producer. Fixed costs are limited as these companies do not own any film production equipment and there are usually only a mimimum of permanent employees.

Production companies often specialize in terms of distribution media, e.g. feature films, documentary, television in order to keep overhead costs down and to maintain more consistent workflow through established distribution relationships.