# Permissions to create new tenants are limited to the Tenant Creator role

A threat actor or a well-intentioned but uninformed employee can create a new Microsoft Entra tenant if there are no restrictions in place.

Source: https://maester.dev/docs/tests/ZTA.21787

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:::note[Maester checks this too]
[MT.1068](/docs/tests/MT.1068) (Restrict non-admin users from creating tenants.), [CIS.M365.5.1.2.3](/docs/tests/CIS.M365.5.1.2.3) (Ensure 'Restrict non-admin users from creating tenants' is set to 'Yes'), [EIDSCA.AP12](/docs/tests/EIDSCA.AP12) (Default Authorization Settings - Default User Role Permissions - Allowed to create Tenants.) check the same setting. Running both reports it twice.
:::

## Overview

A threat actor or a well-intentioned but uninformed employee can create a new Microsoft Entra tenant if there are no restrictions in place. By default, the user who creates a tenant is automatically assigned the Global Administrator role. Without proper controls, this action fractures the identity perimeter by creating a tenant outside the organization's governance and visibility. It introduces risk though a shadow identity platform that can be exploited for token issuance, brand impersonation, consent phishing, or persistent staging infrastructure. Since the rogue tenant might not be tethered to the enterprise’s administrative or monitoring planes, traditional defenses are blind to its creation, activity, and potential misuse.

## Remediation

Enable the **Restrict non-admin users from creating tenants** setting. For users that need the ability to create tenants, assign them the Tenant Creator role. You can also review tenant creation events in the Microsoft Entra audit logs.

- [Restrict member users' default permissions](https://learn.microsoft.com/entra/fundamentals/users-default-permissions?wt.mc_id=zerotrustrecommendations_automation_content_cnl_csasci#restrict-member-users-default-permissions)
- [Assign the Tenant Creator role](https://learn.microsoft.com/entra/identity/role-based-access-control/permissions-reference?wt.mc_id=zerotrustrecommendations_automation_content_cnl_csasci#tenant-creator)
- [Review tenant creation events](https://learn.microsoft.com/entra/identity/monitoring-health/reference-audit-activities?wt.mc_id=zerotrustrecommendations_automation_content_cnl_csasci#core-directory). Look for OperationName=="Create Company", Category == "DirectoryManagement".

## Run it

The check runs as part of the whole assessment, with the ZeroTrustAssessment module installed:

```powershell
Install-Module ZeroTrustAssessment -Scope CurrentUser
Connect-Maester
Invoke-Maester -Pack ZTA -SkipBuiltIn
```

Leave out `-SkipBuiltIn` to run Maester's own checks in the same run.

<details>
<summary>About this check</summary>

| | |
| --- | --- |
| Severity | High |
| Effort to fix | Medium |
| Impact on users | Medium |
| Pillar | Identity |
| Category | Privileged access |
| Product | [Entra ID](/docs/tests/products/entra) |
| Feature | User and directory settings |
| Area | Access control |
| Licence | Free |
| Tenant | Workforce |

Product, feature, area and ATT&CK are Maester's: the assessment does not record them, so Maester keeps them in the pack's `taxonomy.json`.

</details>

<p class="mt-ms-note not-content"><svg class="mt-ms-note__logo" viewBox="0 0 21 21" aria-hidden="true"><rect width="10" height="10" fill="#f25022"/><rect x="11" width="10" height="10" fill="#7fba00"/><rect y="11" width="10" height="10" fill="#00a4ef"/><rect x="11" y="11" width="10" height="10" fill="#ffb900"/></svg><span>A Microsoft check, part of the <a href="/docs/tests/packs/zero-trust-assessment">Zero Trust Assessment</a> pack. Text from ZeroTrustAssessment 3.1.0, © Microsoft, <a href="/docs/tests/packs/zero-trust-assessment#licence">MIT licence</a>.</span></p>
