MS Learn says you create multiple tenants in a subscription?

Question

In MS Learn, I find this quite confusing:

”Within an Azure subscription, you can create multiple Microsoft Entra tenants”

I always thought that you can create multiple subscriptions within a single tenant, not the other way around?

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Answer 1

Hello,

Welcome to Microsoft Q&A,

Your understanding is correct on how Azure normally works.

One Microsoft Entra ID tenant → multiple Azure subscriptions.

• You create a tenant first (Microsoft Entra = identity boundary, formerly Azure AD).
• Inside that tenant, you can have many Azure subscriptions (e.g., Pay-As-You-Go, Enterprise Agreement, etc.).

"Within an Azure subscription, you can create multiple Microsoft Entra tenants"?

This statement is incorrect if read literally. You cannot create tenants inside subscriptions unless B2C tenant. Subscription can only be associated with one tenant at a time. They tried to explain that if you have access to Azure via a subscription, you can create additional Entra tenants — but those tenants are NOT “inside” the subscription. They are separate identity containers.

Normal tenants are free-floating; B2C tenants are subscription-bound.

1. Microsoft Entra ID B2C tenants do have a special relationship with subscriptions.
2. When you create a B2C tenant, you must link it to an Azure subscription at the time of creation because:
   • B2C uses Azure resources (metered usage like authentication, app registration, etc.)
   • Billing is tied to your Azure subscription.

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