Microsoft 365 guide

How to Create a User in Microsoft 365

By Gander Web · Updated 11 October 2026 · 3 min read

In short

In the Microsoft 365 admin centre, go to Users > Active users > Add a user. Enter the name and username, choose the password settings, assign a licence, leave the role as User unless they need admin rights, and click Finish adding.

You need to be a Global Administrator or User Administrator to add users. Everyone who needs their own mailbox and the apps needs a licence. Shared addresses such as info@ can be shared mailboxes instead, which don't need one.

1. Open Active users

Sign in at admin.microsoft.com, go to Users > Active users and click Add a user.

2. Set up the basics

3. Assign a licence

Set the location to United Kingdom and tick the licence the user needs. Business Basic covers email, Teams and the web apps. Business Standard adds the desktop apps. Business Premium adds device management and advanced security. Without a licence the user has no mailbox, so if you've run out, buy another before you start.

4. Choose a role

Under Optional settings, leave the role at User (no admin center access) unless the person needs to manage other users. Keep admin roles to as few people as possible. You can add a job title and department here too.

5. Finish and send the details

Check the summary and click Finish adding. Microsoft shows the username and temporary password, and can email them to you. Send the password separately from the username, by text or in person. The mailbox is usually ready within a few minutes, though it can take up to an hour.

The user's first sign-in

The new user signs in at office.com, sets their own password, and may be asked to set up the Microsoft Authenticator app. Then they can add the account to Outlook on their computer and the Outlook and Teams apps on their phone. See using Business Basic with desktop Outlook.

Adding several users at once

On the Active users page, choose Add multiple users and upload a CSV file. Microsoft provides a template with the right column headings, and the wizard assigns licences as part of the import.

Microsoft 365 set up for you

We buy the licences, add your users and move your email across. Business Basic from £6.48 a user a month on an annual plan, with no VAT to add.

See Microsoft 365

Questions

What licence does a new user need?

One that matches their work. Business Basic for email and the web apps, Business Standard for the desktop Office apps, Business Premium for device management and advanced security. A user can't get a mailbox without one.

How do I set up the new user's email?

Nothing extra is needed. Once a licensed user is created, Microsoft creates their mailbox on your domain, usually within minutes. They sign in at office.com or add the account to Outlook.

Can I add several users at once?

Yes. Use Add multiple users on the Active users page and upload a CSV file built from Microsoft's template.

How do I reset a user's password?

In Users > Active users, select the person and choose Reset password. Set a temporary password and require them to change it at their next sign-in.

How do I change a user's licence?

Open the user in Users > Active users, go to the Licenses and apps tab, tick or untick the licence, and save. Changes apply within a few minutes.

What happens to a user's email when they leave?

Block their sign-in, convert the mailbox to a shared mailbox so colleagues keep access to past email, then remove the licence so you can reuse it. We can do this for you.