How to Add Users in Microsoft 365 Admin Centre: Step-by-Step

Adding new users to Microsoft 365 is one of the most common admin tasks for any business using the platform. Whether you are onboarding a new employee, setting up a contractor, or expanding your team, the Microsoft 365 Admin Centre makes it straightforward — once you know where to look.

This step-by-step guide walks you through the process of adding users, assigning licences, and configuring their accounts correctly from the start.

Before You Start: What You Need

To add users in Microsoft 365, you will need:

• Global Administrator or User Administrator access to the Microsoft 365 Admin Centre
• An available licence — each user needs a licence assigned (e.g., Microsoft 365 Business Basic, Standard, or Premium)
• The new user's details — name, email address (or desired username), department, and job title

If you do not have admin access, contact your IT team or managed service provider to request it or have them add the user on your behalf.

Step 1: Sign In to the Microsoft 365 Admin Centre

Go to admin.microsoft.com and sign in with your admin account. This takes you to the Admin Centre dashboard where you can manage users, licences, billing, and settings.

Step 2: Navigate to Active Users

From the left-hand navigation menu, select Users and then Active users. This page shows a list of all current users in your organisation with their display name, username, licences, and sign-in status.

Step 3: Click "Add a User"

At the top of the Active users page, click Add a user. This opens a guided setup wizard that walks you through each step.

Step 4: Enter the User's Basic Information

Fill in the following fields:

• First name and last name
• Display name — this auto-populates but can be edited
• Username — this becomes the user's email address (e.g., j.smith@yourdomain.co.uk)
• Domain — select the correct domain if you have more than one registered

You will also set the initial password at this stage. You can auto-generate a password or create one manually. Tick the option to require the user to change their password on first sign-in for security.

Step 5: Assign a Product Licence

Select the licence you want to assign to the new user. Your options depend on what licences your organisation has purchased. Common choices include:

• Microsoft 365 Business Basic — web-only versions of Office apps plus Exchange, Teams, SharePoint, and OneDrive
• Microsoft 365 Business Standard — desktop Office apps plus all Basic features
• Microsoft 365 Business Premium — Standard features plus advanced security and device management

If you have no available licences, you will need to purchase additional ones from the Billing > Purchase services section first. Not sure which plan is right? See our comparison of Microsoft 365 plans for UK businesses.

Step 6: Set Optional Settings

You can configure additional settings during setup:

• Roles — assign admin roles if needed (Global admin, User admin, etc.). Leave as "User (no admin access)" for standard employees
• Profile information — add job title, department, office location, and phone number. This information populates the company directory and Teams profiles

Step 7: Review and Finish

Review the details you have entered, confirm everything is correct, and click Finish adding. Microsoft 365 creates the account and assigns the licence immediately.

You will see a confirmation screen with the new user's username and temporary password. You can email these details to the user or share them securely.

Adding Multiple Users at Once

If you need to add several users — for example, when onboarding a whole team — you can use the bulk import option:

• From the Active users page, click Add multiple users
• Download the CSV template provided by Microsoft
• Fill in the user details (username, first name, last name, display name, and licence)
• Upload the completed CSV file
• Microsoft 365 processes the file and creates all accounts

This is significantly faster than adding users one by one when dealing with larger numbers. For a complete onboarding workflow, see our IT onboarding checklist for new employees.

Post-Setup: Essential Configuration Steps

Once the user account is created, there are several additional steps to complete:

• Enable multi-factor authentication (MFA) — this should be mandatory for all users to prevent account compromise
• Configure email signatures — set up a branded email signature for the new user
• Add to distribution groups and Teams — ensure the user is included in the relevant email groups, Microsoft Teams channels, and SharePoint sites
• Set up devices — if using Microsoft 365 Business Premium, enrol the user's devices in Intune for management and security
• Share onboarding resources — provide the user with login instructions, company IT policies, and links to internal resources

Common Issues When Adding Users

Here are a few common problems and how to resolve them:

• "No licences available" — you need to purchase additional licences from the Billing section before you can assign one to a new user
• Username already exists — check if a previous account with that username was soft-deleted. You can restore it from the Deleted users section or choose a different username
• User cannot sign in — verify the account is not blocked. Check the sign-in status on the Active users page
• Emails not arriving — allow up to 24 hours for DNS propagation if the domain was recently added. Check MX records if issues persist

Need Help Managing Microsoft 365?

If managing Microsoft 365 is taking up too much of your time, or you want to ensure best practices are followed, Connection Technologies can connect you with managed IT support providers who handle Microsoft 365 administration, security configuration, and licence optimisation on your behalf.