Step 1: Sign in to Microsoft 365 Admin Center
Open a browser and go to admin.microsoft.com. Sign in using your administrator credentials.
Step 2: Go to Active Users
From the left-hand navigation pane, select "Users," then choose "Active users." This will open the page where you manage user accounts.
Step 3: Add a New User
Click the "Add a user" button at the top of the Active users page. This will start the user creation wizard.
Step 4: Enter Basic User Information
Click "Next" to proceed.
Step 5: Set the User's Password
Choose to either auto-generate a password or manually create one. You can also select the option to require the user to change their password upon first sign-in. Click "Next."
Step 6: Assign Product Licenses (License Mapping)
Select the user’s location from the dropdown menu. This is important as license availability can depend on the region. Then, you’ll see a list of available licenses such as Microsoft 365 Business Standard, Microsoft 365 E3, or other plans you've purchased. Check the box for the license(s) you want to assign to this user. If no licenses are available, the system will notify you that you're out of licenses.
Click "Next" once you've selected the license.
Step 7: Configure Optional Settings
Here you can assign roles to the user. By default, the user is added without any admin roles. You can choose to make them a Global admin, Exchange admin, or assign custom roles. You can also fill in optional profile info like job title, department, or office.
Click "Next" to continue.
Step 8: Review and Finish
Review all the entered details to ensure everything is correct. Then click "Finish adding" to create the user.
After the user is created, you'll see a confirmation screen showing their new Microsoft 365 email and temporary password. You can download the credentials or email them directly.
Step 9: Share Credentials
Communicate the new credentials securely to the user, and instruct them to sign in at portal.office.com to begin using Microsoft 365.