How to Add a User in the Microsoft 365 Admin Center
Step-by-step guide to creating a user account in the Microsoft 365 admin center, including domain selection, password options, license assignment, and PowerShell.
TL;DR: Use the Global Administrator role only when you have to — it has unlimited access. For routine work, pick the most narrowly-scoped role that fits the task: User Administrator for user management, License Administrator for licensing, Exchange Administrator for email, SharePoint Administrator for SharePoint, Conditional Access Administrator for CA policies. Microsoft Entra ID has 100+ built-in roles; you’ll use about a dozen.
Microsoft 365 administration runs on Microsoft Entra ID’s role-based access control (RBAC). The role you assign to an admin determines what they can read, write, and do. Picking the right one — and not just defaulting to Global Administrator — is the single biggest control over the blast radius of a compromised admin account.
Each role grants a defined set of permissions — specific operations the holder can perform. When a user signs in to an admin portal, Microsoft Entra ID checks their role assignments and decides which features and data are visible and editable.
Microsoft publishes the full role permissions reference at https://learn.microsoft.com/entra/identity/role-based-access-control/permissions-reference. There are 100+ built-in roles plus the option to create custom ones. For most tenants, you’ll use about 12 of them regularly.
Assign the least permissive role that lets the person do their job.
Why it matters:
The Microsoft Entra docs include a least privileged roles by task page — bookmark it. When a colleague says “I need access to do X,” look it up there.
| Role | What they can do | Use it when |
|---|---|---|
| Global Administrator | Everything in every Microsoft admin portal. | Tenant setup, emergency access, and operations no other role allows. Limit to 2-5 admins. |
| User Administrator | Create/edit/delete non-privileged users, reset their passwords, assign limited admin roles, manage groups. | Day-to-day onboarding and offboarding work. |
| Password Administrator | Reset passwords for non-admin users only. | Tier-1 helpdesk staff. |
| Privileged Authentication Administrator | Reset passwords and manage MFA for any user, including Global Administrators. | The role that can rescue a locked-out Global Admin. Have one. |
| License Administrator | Assign, remove, and reclaim user licenses. Cannot create users. | Licensing operations team. |
| Helpdesk Administrator | Reset non-admin passwords, manage service tickets. | Tier-1 support. |
| Groups Administrator | Create/manage Microsoft 365 groups and security groups. | Identity governance work. |
| Role | What they can do | Use it when |
|---|---|---|
| Security Administrator | Manage security defaults, defender settings, alerts, security reports. | Security operations team. |
| Conditional Access Administrator | Create and manage Conditional Access policies. | The team that owns CA — typically separate from broader security. |
| Authentication Administrator | Manage authentication methods, force MFA re-registration for non-admins. | Helpdesk staff who handle MFA resets. |
| Security Reader | Read-only access to security data and reports. | Auditors, compliance reviewers. |
| Role | Scope |
|---|---|
| Exchange Administrator | Exchange Online — mailboxes, mail flow, anti-spam, message trace |
| Exchange Recipient Administrator | Exchange Online — recipients only (no policy changes) |
| SharePoint Administrator | SharePoint Online and OneDrive — sites, sharing, storage |
| Teams Administrator | Microsoft Teams — teams, channels, calling, meeting policies |
| Intune Administrator | Microsoft Intune — endpoint and app management |
| Power Platform Administrator | Power Platform — environments, DLP, capacity |
| Compliance Administrator | Microsoft Purview — DLP, retention, eDiscovery |
| Compliance Data Administrator | Like Compliance Administrator but limited to compliance data, not configuration |
| Role | What they can read |
|---|---|
| Global Reader | Same visibility as Global Administrator, no write. Use this for executive reviews and audits. |
| Reports Reader | Usage and adoption reports. |
| Message Center Reader | Service health and message center notifications. |
You can assign roles in two places: the Microsoft 365 admin center (a subset of roles) or the Microsoft Entra admin center (the full set, plus governance features).
Or, role-centric:
For roles that don’t appear in the Microsoft 365 admin center, or for Privileged Identity Management:
firstname.admin@contoso.com account for elevated work and use it only when admin tasks require it.To list all admin role assignments in your tenant:
Connect-MgGraph -Scopes "RoleManagement.Read.Directory"
Get-MgRoleManagementDirectoryRoleAssignment -All |
ForEach-Object {
[PSCustomObject]@{
Role = (Get-MgDirectoryRole -DirectoryRoleId $_.RoleDefinitionId).DisplayName
User = (Get-MgUser -UserId $_.PrincipalId).UserPrincipalName
}
} | Format-Table -AutoSize
To assign a role:
$role = Get-MgRoleManagementDirectoryRoleDefinition -Filter "displayName eq 'User Administrator'"
$user = Get-MgUser -Filter "userPrincipalName eq 'alex@contoso.com'"
New-MgRoleManagementDirectoryRoleAssignment `
-PrincipalId $user.Id `
-RoleDefinitionId $role.Id `
-DirectoryScopeId "/"
Step-by-step guide to creating a user account in the Microsoft 365 admin center, including domain selection, password options, license assignment, and PowerShell.
Step-by-step guide to resetting a Microsoft 365 user password from the admin center, including bulk reset, sign-out, and self-service password reset.