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How to Add Users and Assign Licenses in Office 365?

In organizations, users rely on various platforms to update and notify others about their daily tasks and assignments. One such popular platform is Office 365, which enables teams to collaborate efficiently through cloud-based resources. To access an Office 365 workplace, users must have valid credentials and mailbox access.

Adding a user and assigning a license in the Microsoft 365 admin center simplifies the process, allowing users to sign in and access their Microsoft 365 mailboxes easily.

To follow below methods, you should have admin access or global license of O365.

How to Add User in Microsoft 365 Admin Centre?

When you log in to Office 365 with an admin credential, you can add single or multiple users to your Office 365 account. Here’s how to add a single user:

Add a Single User

  • Navigate to the Active Users option under the Users drop-down menu.
  • Click the Add a User button.

add single user

  • Enter the required details, including the first name, last name, display name, and username.
  • Select the domain for the user account and specify the sign-in details.
  • You can either generate a password automatically or set a new password for the user. If you choose automatic generation, decide whether to send the password via email to the user after account creation.
  • Click Next to proceed.

user profile fill in Office 365

  • Choose the user’s location and assign a license. If you are out of licenses, you can purchase additional ones.

Add License in Office 365

  • Setting roles and profile information is optional and can be configured later. Click Next to continue.
  • Review the entered details to ensure everything is accurate, then click Finish Editing.
  • Finally, click the Close button.

This is how you can add a single user in the Microsoft Admin Center. Now, let’s move on to adding multiple users.

Add Multiple user in Office 365 with License

Adding 50, 100, or more users to Office 365 individually can be a time-consuming task for organizations. To simplify this process, Microsoft 365 (M365) offers the option to add multiple users at once using a CSV file. Here’s how you can do it:

Add Multiple Users in Office 365

  1. Navigate to the Active Users section in the M365 Admin Center.
  2. Click on the Add Multiple Users option.
  3. Check the box to download the example CSV file and fill in the required details, such as first name, last name, username, and other relevant information.
    • Note: The maximum number of users you can add in a single CSV file is 249.

add multiple users

  1. Upload the completed CSV file and click Next to proceed.
  2. On the Licenses page, select the licenses you want to assign to the users and click Next.
  3. Review your selections to ensure all details are accurate, then finish the process by clicking Submit or Finish (depending on the interface).

By following these steps, you can efficiently add multiple users to Office 365, saving time and effort for your organization.

Add Single/Multiple  Microsoft 365 user accounts with PowerShell

Connect to Microsoft 365 PowerShell

Connect-MsolService

Create the User with License and Password

New-MsolUser [email protected] `
             -DisplayName "Somit Vishwakarma" `
             -FirstName "Somit" `
             -LastName "Vishwakarma" `
             -UsageLocation "India" `
             -LicenseAssignment "mailsdaddy:ENTERPRISEPACK" `
             -Password "MailsDaddy123!"

If you don’t add the password then random password will be generated.

Verify the User

Get-MsolUser -UserPrincipalName [email protected]

Note:

  • Global Administrator or User Administrator role required.
  • UsageLocation parameter is required.
  • If you’re not assigning a license during creation, you can do it later with cmdlet:
Set-MsolUserLicense.

Add Multiple User to Microsoft 365 with PowerShell

You can also use PowerShell to add multiple users to Office 365 and assign licenses. To do this, you need to create a CSV file containing the necessary user information. Ensure your CSV file includes at least the following properties:

Required Properties for the CSV File

  • UserPrincipalName: The username and domain for the user (e.g., [email protected]).
  • FirstName: The user’s first name.
  • LastName: The user’s last name.
  • DisplayName: The full name as it will appear in Office 365.
  • LicenseAssignment: The license SKU or product code to assign (e.g., mailsdaddy:ENTERPRISEPACK).

Steps to Add Users with PowerShell

  1. Prepare the CSV File:
    • Create a CSV file like:
UserPrincipalName,FirstName,LastName,DisplayName,UsageLocation,MailNickname
[email protected],Ram,Bose,Ram Bose, India, RamBose
[email protected],Somit,Vishwakarma, Somit Vishwakarma, India,SomitSVK
    • Save the file with a name like MailsDaddyTeams.csv.
  1. Connect to Microsoft 365 PowerShell:
    • Run the following command to connect PowerShell to Microsoft 365:
Connect-MsolService
  1. Import the CSV File and Add Users:
    • Use the following script to loop through the CSV and add users:
$users = Import-Csv -Path " C:\Users\mailsdaddy\MailsDaddyTeam.csv "
foreach ($user in $users) {
    New-MsolUser -UserPrincipalName $user.UserPrincipalName `
                 -FirstName $user.FirstName `
                 -LastName $user.LastName `
                 -DisplayName $user.DisplayName `
                 -UsageLocation "India" # Set location as needed
                 -Password $password `
                 -ForceChangePassword $true # Enforce password change at first login

    Set-MsolUserLicense -UserPrincipalName $user.UserPrincipalName -AddLicenses $user.LicenseAssignment
# Optional
Output the generated password for record-keeping (ensure secure storage) Write-Output "User: $($user.UserPrincipalName) | Password: $password"
}
  1. Verify User Addition:
    • After the script runs, you can verify that the users have been added and licenses assigned by checking the Microsoft 365 Admin Centre or running:
Get-MsolUser

By following these steps, you can efficiently add multiple users and assign licenses in bulk using PowerShell.

That’s it.

Check Available License and Subscription via PowerShell

Connect to the M365 then run the command for all subscriptions:

Get-MsolAccountSku

How to Unassign the User License in Microsoft Admin Centre?

In the admin center, go to the Billing > Licenses page

  • Select a product or Microsoft subscription from where you want to remove
  • Go to the user > Click on three dots and click on Unassign license.

Unassign Licenses

  • Follow the window and unassign the license to the user.

You can also assign and unassign the license through: Active users page

PowerShell to Unassign user license

Connect to M365 then run:

Set-MsolUserLicense -UserPrincipalName [email protected] -RemoveLicenses "mailsdaddy:ENTERPRISEPACK"

Verify License Removal

Get-MsolUser -UserPrincipalName [email protected] | Select-Object -ExpandProperty Licenses

Conclusion

In this post, I have provided a detailed explanation of how to assign and unassign licenses to users in both the Exchange Admin Center and PowerShell. The step-by-step guidance is designed to help you navigate these processes efficiently. If you find this article helpful, please consider sharing it with others who might benefit from this information.

For any additional assistance or to cloud services, feel free to reach out to the MailsDaddy support team.

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