Vincent council agreed to the change of use for the Simpson Street property, which will convert a warehouse into The Backlot Perth and office.
Run by Ian Hale, Jason Dover and Sian Delaney, the cinema aims to offer a 50-seat screening room targetted for product launches, staff training, client presentations and social gatherings.
Bookings will need to be made to use the area.
A statement released by Backlot Perth says the cinema will feature an 8.5m by 4.5m silver screen, 2k projector, 7.1 Dolby Digital surround sound and 3D screening capabilities.
The cinema is aligned with the Backlot Studios in Melbourne. Buzz Marketing, which is currently based in Leederville, is expected to use the office at the property.