Managing external identities to enable secure access for partners, customers, and other non-employees
Hello Watson Sileti
Thank you for reaching out to Microsoft Q&A.
It looks like you’ve run into a few “expected” quirks with a brand-new, free-tier Entra tenant. Let me walk through each of your points:
- “Migrate off legacy MFA” banner
- That banner is simply a heads-up that Microsoft is retiring per-user (legacy) MFA and SSPR policies in favor of the new “Authentication methods” policy by September 2025.
- If you’ve never enabled legacy per-user MFA or SSPR in this tenant, there’s nothing to migrate today—so you won’t see a “Migrate now” button. You can safely ignore the banner until you actually have legacy settings to migrate (at which point the option will appear under Entra Admin center > Identity > Protection > Authentication methods > Settings).
- No Migration button under Authentication methods > Policies
- The portal only shows the migration toggle if it detects legacy per-user MFA or SSPR settings to convert. On a brand-new tenant with no per-user MFA activity, it simply won’t show up.
- External (guest) users can’t register MFA
- On the Free tier you don’t have Conditional Access, so you can’t force external users to register via a CA policy. Instead, you can leverage the built-in Email One-Time-Passcode (OTP) fallback for B2B guests who don’t have an Entra or Microsoft account. Here’s how to enable it:
- In the Entra Admin portal go to Identity > Protection > Authentication methods > Policies > Email OTP.
- Under the Enable and target tab, include All external users (or a specific guest group).
- Under Configure, set Allow external users to use email OTP to Enabled.
- Save.
- After that, any guest who redeems an invitation and doesn’t have an existing Microsoft identity will receive a one-time code to their email and can use it to sign in.
- If your invited users do have MSAs or Entra accounts, they’ll authenticate with their home‐tenant MFA. You can’t override that on Free tier.
- On the Free tier you don’t have Conditional Access, so you can’t force external users to register via a CA policy. Instead, you can leverage the built-in Email One-Time-Passcode (OTP) fallback for B2B guests who don’t have an Entra or Microsoft account. Here’s how to enable it:
If you still have trouble with external users not seeing a registration prompt, ask them to browse directly to https://mysignins.microsoft.com/security-info – they should be able to add Email OTP or any external authentication methods they’re targeted for.
—Hope that clears things up!
Reference Links
- Migrate legacy MFA & SSPR into Authentication methods policy: https://learn.microsoft.com/entra/identity/authentication/how-to-authentication-methods-manage
- Email OTP for B2B external users: https://learn.microsoft.com/entra/external-id/one-time-passcode
- External MFA registration in Security info: https://learn.microsoft.com/entra/identity/authentication/how-to-authentication-external-method-manage
If the answer is helpful, kindly upvote it. If you have extra questions about this answer, please click "Comment"