Create a new Microsoft Entra ID tenant for my client.

Jonathan Duncan 40 Reputation points
2025-03-03T18:45:52.9833333+00:00

Currently my client has a tenant that was created when opening his azure account. We have set up AVD and users for the AVD in that tenant.

However we would like to create a new tenant with a different name, a lot shorter to set up our AVD host and create our Users there. But when going to https://portal.azure.com/#view/Microsoft_AAD_IAM/CreateDirectoryBlade/releaseCreateOperation~/false to create a new tenant, the "Microsoft Entra ID" tenant type is greyed out and cannot be selected and we have this informational message "Customers must own a paid license to create Microsoft Entra Workforce tenant."

What do we have to do be able to create a new tenant for this purpose with a different name?

Will it need to end in .onmicrosoft.com?

Can we create one that doesn't require MFA?

Look forward to your help. Thanks

Jonathan

Microsoft Security | Microsoft Entra | Microsoft Entra ID
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Accepted answer
  1. Akhilesh Vallamkonda 15,320 Reputation points Microsoft External Staff Moderator
    2025-03-03T19:55:32.4233333+00:00

    Hi @Jonathan Duncan

    Thank you for reaching Microsoft Q&A forum!

    I understand that you are trying to create a new tenant in your Azure subscription, and you noticed that you are not able to choose the Tenant type because the option is greyed out.
    Based on your issue I understand that you are using the trail subscription. Only paid customers can create a new Workforce tenant in Microsoft Entra ID. Customers using a free tenant, or a trial subscription won't be able to create additional tenants from the Microsoft Entra admin center.

    • You must have the paid Microsoft Entra P1/P2 license plan to create. Customers on trial subscriptions won't be able to create additional tenants from the Microsoft Entra admin center.
      If you have the paid license and still unable to create tenant, check the user settings page to ensure that tenant creation isn't turn off.
      User's image

    If the option is not enabled, you must be assigned at least the Tenant Creator role.

    • When you create a new tenant, by default the UPN suffix comes with the .onmicrosoft.com if you want to add your own UPN suffix you need to Add your custom domain name to your tenant.
    • Creating a new Microsoft workforce tenant will automatically require Multi-Factor Authentication

    Hope this helps. Do let us know if you any further queries by responding in the comments section.


    If this answers your query, do click Accept Answer and Yes for was this answer helpful. And, if you have any further query do let us know.

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