Create Tenant
In brief
The article now states that a governance relationship and related resources are established only when the home tenant has a default governance policy template.
What Entra admins need to know
Administrators should check for a default governance policy template when setting expectations for tenant creation and governance provisioning.
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Documentation change
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author: tafra00
ms.author: tazkiaafra
ms.topic: how-to
ms.date: 07/29/08/26/2026
ai-usage: ai-assisted
ms.custom: msecd-doc-authoring-1018
#customer intent: As an IT administrator, I want to create a governed workforce tenant so that my organization can manage it through a governance relationship.
When you create a tenant using the Governed Workforce option in the Microsoft Entra admin center, the secure add-on tenant creation flow automatically:
- Creates the new workforce tenant
- Establishes a governance relationship between your home tenant and the new tenant
based onif your home tenant has a default governance policy template - Provisions a Microsoft Entra ID Free billing asset under your selected Azure subscription and resource group
This article doesn't cover creating an external tenant configuration for consumer-facing apps. For customer identity and access management scenarios, see Microsoft Entra External ID for customers.
This article doesn't cover creating an external tenant configuration for consumer-facing apps. For customer identity and access management scenarios, see Microsoft Entra External ID for customers.
Prerequisites
Before you create a governed workforce tenant, review the following requirements:
After the system creates the tenant:
AIf your home tenant has a default governance policy template, a governance relationship forms between your home tenant and the newtenant, using the default governance policy template.- tenant. The
policytemplate provisionsresourcesresources, including cross-tenant access settings, granular delegated admin privileges (GDAP) assignments, and service principals. - A Microsoft Entra ID Free billing asset appears in your Azure subscription under the resource group you selected.
- The new tenant appears in your related tenants inventory.
@@ -5,7 +5,7 @@ description: Learn how to securely create a governed Microsoft Entra workforce t author: tafra00 ms.author: tazkiaafra ms.topic: how-to-ms.date: 07/29/2026+ms.date: 08/26/2026 ai-usage: ai-assisted ms.custom: msecd-doc-authoring-1018 #customer intent: As an IT administrator, I want to create a governed workforce tenant so that my organization can manage it through a governance relationship.@@ -18,13 +18,11 @@ This article is for IT administrators who need to create an add-on tenant that i When you create a tenant using the **Governed Workforce** option in the Microsoft Entra admin center, the secure add-on tenant creation flow automatically: - Creates the new workforce tenant-- Establishes a [governance relationship](governance-relationships.md) between your home tenant and the new tenant based on your [governance policy template](governance-policy-templates.md)+- Establishes a [governance relationship](governance-relationships.md) between your home tenant and the new tenant if your home tenant has a default [governance policy template](governance-policy-templates.md) - Provisions a [Microsoft Entra ID Free billing asset](/azure/cost-management-billing/manage/microsoft-entra-id-free) under your selected Azure subscription and resource group This article doesn't cover creating an external tenant configuration for consumer-facing apps. For customer identity and access management scenarios, see [Microsoft Entra External ID for customers](~/external-id/customers/overview-customers-ciam.md). -This article doesn't cover creating an external tenant configuration for consumer-facing apps. For customer identity and access management scenarios, see [Microsoft Entra External ID for customers](~/external-id/customers/overview-customers-ciam.md).- ## Prerequisites Before you create a governed workforce tenant, review the following requirements:@@ -43,8 +41,7 @@ For step-by-step instructions on creating a governed workforce tenant, see the * After the system creates the tenant: -1. A governance relationship forms between your home tenant and the new tenant, using the [default governance policy template](governance-policy-templates.md).-1. The policy template provisions resources including cross-tenant access settings, granular delegated admin privileges (GDAP) assignments, and service principals.+1. If your home tenant has a [default governance policy template](governance-policy-templates.md), a governance relationship forms between your home tenant and the new tenant. The template provisions resources, including cross-tenant access settings, granular delegated admin privileges (GDAP) assignments, and service principals. 1. A [Microsoft Entra ID Free billing asset](/azure/cost-management-billing/manage/microsoft-entra-id-free) appears in your Azure subscription under the resource group you selected. 1. The new tenant appears in your [related tenants](related-tenants.md) inventory. 