Within an Azure subscription, you can create multiple Microsoft Entra tenant..is it true?..it is mentioned os in learn module documentation

Question

I was going through Microsoft learn documentation on Microsft Entra id topic.Then i found this line in documentation

"Within an Azure subscription, you can create multiple Microsoft Entra tenant"..is it true?..it is mentioned os in learn module documentation

Answer 1

In short - no.

Entra tenant is an entity that exists outside and independently of an Azure subscription. In other words, you do NOT create an Entra tenant IN an Azure subscription.

You can create multiple Entra tenants by using the Azure portal, but this in no way implies that the tenant exists within a subscription that you are connected to via the Azure portal.

Btw. keep in mind that a tenant can exists without an Azure subscription. The opposite is not true - every Azure subscription must be associated with exactly one Entra tenant. A single Entra tenant can be associated with multiple subscriptions.

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hth

Marcin

Answer 2

Hi @chaithanya Tiruvaipati ,

Thank you for contacting Microsoft QnA,

Yes, you can create multiple Microsoft Entra (Azure AD) tenants even if you only have one Azure subscription. The Microsoft Learn documentation is (most likely) trying to convey that you are not limited to a single tenant when working in Azure.

A more detailed explanation

1. Tenant vs. Subscription
   • A tenant in Microsoft Entra (formerly Azure AD) is essentially an instance of Azure Active Directory—an identity and security boundary for an organization. It’s where user accounts, groups, enterprise applications, and other identity objects live.
   • An Azure subscription is an agreement with Microsoft that gives you access to Azure services and resources. Billing and usage are tied to that subscription.
2. One Tenant, Multiple Subscriptions
   • Commonly, an organization has one tenant and can have multiple Azure subscriptions under that tenant (e.g., one for production, one for dev/test, etc.). This is the scenario most people think of first.
3. Multiple Tenants from the Same Account
   • However, the reverse scenario—creating multiple tenants while using a single Azure subscription/account to do so—is also possible. Each tenant is a separate identity environment with its own directory, but all can be created (and managed) by the same global admin account that happens to have an Azure subscription.
   • The important distinction is that a subscription always trusts exactly one tenant (the one it’s associated with for billing and resource management). But that doesn’t stop you, as a user or admin, from creating additional tenants (with separate directories) in the Azure portal.
4. Where the Confusion Often Arises
   • When you “create” a new Microsoft Entra tenant from the Azure Portal, you're effectively creating a new, standalone Azure AD instance. It does not automatically gain any subscriptions. You can link a subscription to that tenant later, or you can just use it as a separate identity boundary.
   • The wording “Within an Azure subscription, you can create multiple Microsoft Entra tenants” can be interpreted in different ways. Strictly speaking:
   • A single subscription is always contained within exactly one tenant.
   • From the perspective of your administrator account that has a subscription, you can create multiple tenants—yes, that’s allowed.
   • Each new tenant you create can exist without having any subscription attached, or you could associate a subscription with it if needed (e.g., for resource creation).
5. Official Microsoft Docs
   • Microsoft Docs generally confirm that you can have multiple tenants, especially in testing or multi-org scenarios. Each tenant is a secure boundary; you might want separate tenants for dev/test, mergers and acquisitions, or isolated environments.

Summary

• Yes, the statement that you can create multiple Microsoft Entra tenants—even though you have one Azure subscription—is correct.
• The key is recognizing that each tenant is a separate directory. Your single Azure subscription is associated with one tenant for billing, but the same administrator identity can spin up other tenants for different testing or organizational needs.

Kindly reach out to me if further explanation is needed.

Siri