About 48 fire engines have been dispatched to the area and are currently trying to get the fire under control.
Footage from the scene shows thick smoke billowing out of the four-story building, which is located in a residential area several kilometers south of Kyoto Station, as firefighters worked to douse the flames.
Founded in 1981, Kyoto Animation -- known as KyoAni -- produces animations and publishes anime novels, comics and books, according
to its website. Among Japan's most well known studios, its most famous works include "Free!", manga series "K-On!", the anime TV adaptation of "Haruhi Suzumiya" and "Violet Evergarden" which Netflix picked up in 2018.
The company's philosophy as posted on its website includes keeping a "humanitarian" corporate culture and believes that "promoting the growth of people is equal to creating the brightness of works."
There was an outpouring of grief on Twitter Thursday with fans of the studio offering their condolences.