Verify that 'Restrict non-admin users from creating tenants' is set to 'Yes'

Framework Reference: A.5.15 Integration: Azure – Microsoft Entra ID (formerly Azure AD)

Why this matters

Allowing non-admin users to create new Microsoft Entra ID (formerly Azure AD) or B2C tenants introduces a significant security and governance risk. It enables unmonitored tenant sprawl, circumvents administrative controls, and opens up the possibility of shadow IT environments. Enforcing this restriction ensures tenant creation remains a deliberate and controlled administrative process.


What this check does

This Auto Check verifies whether non-admin users are prevented from creating new tenants in the Microsoft Entra directory.

Check Logic

Passes if:

  • AllowedToCreateTenants is set to false in the DefaultUserRolePermissions configuration.

Fails if:

  • AllowedToCreateTenants is set to true.

Applies to:

  • Microsoft Entra ID (formerly Azure AD)

How to fix it

Azure Portal

  1. Go to Microsoft Entra ID from the Azure Home menu.
  2. Under Manage, select Users.
  3. Click on User settings.
  4. Set Restrict non-admin users from creating tenants to Yes.
  5. Click Save.

PowerShell

Import-Module Microsoft.Graph.Identity.SignIns Connect-MgGraph -Scopes 'Policy.ReadWrite.Authorization' Select-MgProfile -Name beta $params = @{  DefaultUserRolePermissions = @{    AllowedToCreateTenants = $false  } } Update-MgPolicyAuthorizationPolicy -AuthorizationPolicyId <yourPolicyId> -BodyParameter $params

Replace <yourPolicyId> with your specific authorization policy ID.


Exceptions

There are no common compliance exceptions for this setting. Tenant creation should remain restricted to administrators to ensure proper access governance and avoid tenant sprawl.


Further resources

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