GOV-09MediumRecommended Secure

Restrict Tenant Creation

Governance & Hygiene control for Microsoft 365 and Entra ID

Why This Control Matters

If any user can create tenants, they can spin up identity boundaries outside your governance and monitoring. This shadow IT creates ungoverned environments that bypass security controls and complicate incident response.

Expected State

When this control is compliant, your tenant should meet these criteria:

  • 1Non-admin users cannot create new tenants
  • 2Tenant creation is restricted to administrators
  • 3authorizationPolicy.defaultUserRolePermissions.allowedToCreateTenants is false

Enforcement

Default Mode
Advisory

Alerts on deviations but does not make changes

Auto-Remediation
Manual Only

Detect-only. Fix in Entra admin center > User settings > Restrict non-admin users from creating tenants = Yes.

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