Adding a user in Microsoft 365

Step-by-step guide to creating a new user account in Microsoft 365, assigning a license, and getting them set up with email and apps.

When someone new joins your team, you need to create a Microsoft 365 account for them. This gives them a business email address, access to OneDrive, Teams, and all the apps included in their license.

Quick summary

In the Microsoft 365 admin center, go to Users → Active users → Add a user. Fill in their name, create their email address, assign a license, and let Microsoft generate a password. At the end, print their details to a PDF and hand that over securely — the admin center no longer emails passwords out.

What you'll need

Access to the Microsoft 365 admin center with the License Administrator or User Administrator role. Microsoft's own advice is to use the least privileged role that does the job rather than making everyone a Global Administrator.
An available license to assign (if you have no spare licenses, you'll need to add one in billing first)
The new person's name and the email address you want to create for them

Adding a new user

Sign in to the admin center at admin.microsoft.com.

Go to Users → Active users and select Add a user. (If the top of the admin center says Simplified view rather than Dashboard view, the button is just Add user.)

Set up the basics. Fill in first name, family name, display name and username, and pick the domain their address sits on — so sarah.jones plus yourcompany.com gives sarah.jones@yourcompany.com.

Check the password settings. Automatically create a password is selected by default; clear it if you want to set one yourself. Require this user to change their password when they first sign in is also on by default — leave it on. Then select Next.

Assign product licenses. Set their location — Microsoft needs it for licensing — and pick the plan for this person. If you have no licenses spare you can still create the account and buy more. To narrow down what they get, expand Apps and tick or untick individual apps.

Optional settings. Most people need nothing here. Expand Roles only if this person should be an admin, and Profile info if you want to record a job title or department.

Review and finish. Check the summary and select Finish adding.

Hand over the sign-in details safely. On the completion page, select Print to produce a hard copy or PDF of their credentials, and pass that to them in person or through something secure. There's also an option to email them a getting-started message — that's useful, but it does not contain the password.

The admin center will not email a password

Since 30 August 2024 Microsoft has removed the ability to send account details and passwords by email from inside the Microsoft 365 admin center. Microsoft's own recommendation is to print the account information to a PDF and share it securely. Never paste a new password into an ordinary email.

Account created

The new user can now sign in at microsoft365.com, which opens Microsoft's sign-in home at m365.cloud.microsoft. They will be prompted to change their password on first sign-in (if you left that option on). Point them to the signing in guide if they need help.

After adding the user

Once the account is created, here are the common next steps:

Set up their Outlook signature — see Setting up your Outlook signature.
Add them to any distribution groups or shared mailboxes — see Distribution groups & lists and Shared mailboxes.
Share relevant OneDrive or SharePoint folders with them.
Add them to the relevant Teams channels — see Microsoft Teams basics.

Common questions

I don't have any spare licenses. What do I do?

You can still create the account, and Microsoft will offer to sell you more licenses during the wizard. To buy them separately, go to Billing → Your products (or Subscriptions in Simplified view), open the subscription, and select Buy licenses. See Microsoft 365 billing explained for details.

Can I create the account without assigning a license straight away?

Yes. The person won't be able to use email, OneDrive, or the apps until a license is assigned, and you can assign one later from their user profile in the admin center.

The new user's email address is already taken. What happens?

Every address has to be unique, so you'll be asked to choose a different username. Add a number or use a different format — for example, s.jones@yourcompany.com instead of sarah.jones@yourcompany.com.

How do I add multiple users at once?

In the admin center go to Users → Active users, then select Add multiple users. You can either type the people in as rows on the page or upload a CSV — Microsoft gives you a blank template and an example file to start from. Don't change the column headings or their order. This is the quick way to onboard a whole team.

Need a hand?

If you're stuck, email support@chykalophia.com and we'll help. Include your website address and a screenshot if you can.

Learn more

Add users and assign licenses in Microsoft 365 — Microsoft Learn

Adding a user in Microsoft 365

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