Yes, it is possible.
https://learn.microsoft.com/en-us/azure/architecture/example-scenario/identity/adds-extend-domain
--please don't forget to close up the thread here by marking answer if the reply is helpful--
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I do not have an on-premise active directory server. Is it possible to setup an active directory without on-premise active directory server for the organization?
Yes, it is possible.
https://learn.microsoft.com/en-us/azure/architecture/example-scenario/identity/adds-extend-domain
--please don't forget to close up the thread here by marking answer if the reply is helpful--