How to create a user in Azure with an active subscription

Hello sas parmar,

Welcome to Microsoft Q&A, and thank you for posting your question.

You do not need a higher Azure subscription level to create a basic user. The ability to create users is controlled by Microsoft Entra ID tenant permissions, not by the Azure subscription type or subscription status.

An active Azure subscription allows you to use Azure services, but it does not automatically give your account permission to create users in Microsoft Entra ID. To create a basic/internal user, you must be signed in to the correct Microsoft Entra tenant/directory and your account must have at least the User Administrator role.

The implementation steps are:

1. Sign in to the Microsoft Entra admin center:
   https://entra.microsoft.com
2. Make sure you are in the correct directory/tenant.
   If you have multiple directories, use the directory switcher and select the tenant associated with your Azure subscription.
3. Go to: Entra ID > Users > New user > Create new user
4. Create the user as a normal internal user by selecting user type Member.
5. If the New user or Create new user option is missing or disabled, your account does not have the required Microsoft Entra role. Ask a Global Administrator or Privileged Role Administrator in that tenant to assign your account the User Administrator role.

Also note that being an Azure subscription Owner is not the same as being a Microsoft Entra administrator. Azure RBAC roles such as Owner, Contributor, or Reader control access to Azure resources. Microsoft Entra roles control directory actions such as creating users, managing groups, and assigning directory roles. After the user is created, if that user also needs access to Azure resources, assign Azure RBAC separately from:

Subscription or Resource group > Access control (IAM) > Add role assignment

Useful Microsoft resources for more reading and implementation:

• Create, invite, and delete users in Microsoft Entra ID:
  https://learn.microsoft.com/en-us/entra/fundamentals/how-to-create-delete-users
• Associate an Azure subscription with a Microsoft Entra tenant:
  https://learn.microsoft.com/en-us/entra/fundamentals/how-subscriptions-associated-directory
• Assign Microsoft Entra roles:
  https://learn.microsoft.com/en-us/entra/identity/role-based-access-control/manage-roles-portal
• Assign Azure roles using the Azure portal:
  https://learn.microsoft.com/en-us/azure/role-based-access-control/role-assignments-portal

I hope this is helpful. Please! Do not hesitate to let me know if you have any other questions, steps or clarifications.

Please do not close the thread by upvoting and accepting the answer if any part of it is helpful.