Verify that 'Restrict non-admin users from creating tenants' is set to 'Yes'
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 tofalse
in the DefaultUserRolePermissions configuration.
Fails if:
AllowedToCreateTenants
is set totrue
.
Applies to:
- Microsoft Entra ID (formerly Azure AD)
How to fix it
Azure Portal
- Go to Microsoft Entra ID from the Azure Home menu.
- Under Manage, select Users.
- Click on User settings.
- Set Restrict non-admin users from creating tenants to Yes.
- 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.