CIS.M365.5.1.2.3: Ensure 'Restrict non-admin users from creating tenants' is set to 'Yes'
| ID | CIS.M365.5.1.2.3 |
| Severity | Medium |
| Suite | CIS Microsoft 365 Foundations Benchmark |
| Product | Entra ID |
| Feature | User and directory settings |
| Security area | Access control |
| Resource type | Tenant |
| User impact of fixing | Low |
| Effort to fix | Low |
| Benchmark | CIS Microsoft 365 Foundations Benchmark 7.0.0, 5.1.2.3 (L1, E3 Level 1, E5 Level 1) |
| Framework controls | cis-m365:5.1.2.3nist-800-53-r5:AC-6(10) Least Privilege | Prohibit Non-privileged Users from Executing Privileged Functionsnist-800-53-r5:CM-5 Access Restrictions for Change |
| Reads from | Microsoft Graph |
What this checks and how to fix it
Section titled “What this checks and how to fix it”5.1.2.3 (L1) Ensure ‘Restrict non-admin users from creating tenants’ is set to ‘Yes’
Non-privileged users can create tenants in the Microsoft Entra ID and Microsoft Entra administration portal under “Manage tenant”. The creation of a tenant is recorded in the Audit log as category “DirectoryManagement” and activity “Create Company”. By default, the user who creates a Microsoft Entra tenant is automatically assigned the Global Administrator role. The newly created tenant doesn’t inherit any settings or configurations.
Rationale
Section titled “Rationale”Restricting tenant creation prevents unauthorized or uncontrolled deployment of resources and ensures that the organization retains control over its infrastructure. User generation of shadow IT could lead to multiple, disjointed environments that can make it difficult for IT to manage and secure the organization’s data, especially if other users in the organization began using these tenants for business purposes under the misunderstanding that they were secured by the organization’s security team.
Impact
Section titled “Impact”Non-admin users will need to contact I.T. if they have a valid reason to create a tenant.
Remediation action
Section titled “Remediation action”- Navigate to Microsoft 365 Entra admin center.
- Click to expand Entra ID > Users > User settings.
- Set Restrict non-admin users from creating tenants to Yes then Save.
PowerShell
Section titled “PowerShell”- Connect to Microsoft Graph using
Connect-MgGraph -Scopes "Policy.ReadWrite.Authorization" - Run the following commands:
# Create hashtable and update the auth policy$params = @{ AllowedToCreateTenants = $false }Update-MgPolicyAuthorizationPolicy -DefaultUserRolePermissions $paramsRelated links
Section titled “Related links”- Microsoft 365 Entra admin center
- Restrict member users’ default permissions
- CIS Microsoft 365 Foundations Benchmark v7.0.0 - Page 200
Mito check, based on CIS Microsoft 365 Foundations Benchmark. Author: oed-metzb; contributors: Mynster9361. Open-source licences.
Open-source licences. CIS Benchmark material © Center for Internet Security, Inc.; CISA SCuBA baselines are public domain (CC0).
© 2026 Virtual Petals. Mito is a Virtual Petals service, hosted in Microsoft Azure UAE North.
