This guide shows how to create a new user (mailbox) in the Microsoft 365 admin centre and assign them a licence. You need to be signed in with an administrator account to create users. If your account isn’t an administrator yet, see How to change your user to an administrator in Microsoft 365.
Open the Microsoft 365 admin centre
Sign in to the Microsoft 365 portal at login.microsoftonline.com with your administrator account. On the home screen, click Admin to open the admin centre.

Add the new user
In the admin centre, click Add a user and fill in the new user’s details:
- Name and username — the display name and the email address for the new user.
- Password — either let Microsoft 365 generate one automatically (it will be sent to the contact address you supply in the next step) or set one yourself.
- Product licences — choose the right Microsoft 365 licence under Product licences. If you see Decision required, no licence has been picked yet.
Click Add.

Set an alternate contact address
Enter an alternate email address for the new user. This is where Microsoft 365 will send the generated password (if you didn’t set one yourself), and where the user can request a new password if they forget it.

Click Send email and close. The new user is now created and can sign in to the Microsoft 365 portal with their assigned credentials.