How to Purchase and Set Up Microsoft 365 for a New Company
Question details
A new company needs to purchase and configure Microsoft 365, which includes setting up user accounts, licenses, and a custom company domain name.

- Product
- Microsoft 365
- Device & OS
- not provided
- Scenario
- Setting up the foundational IT infrastructure, email accounts, and office software for a new business entity.
- Observed behavior
- The user aims to successfully establish a Microsoft 365 tenant, verify a domain, configure services, and assign application licenses to employees.
Ensure you have a clear estimate of how many user licenses your company will need and secure administrative access to your company's domain registrar (e.g., GoDaddy, Cloudflare) if you already own a domain name.
Complete Microsoft 365 Business Setup Guide
This is the standard, comprehensive process to purchase a Microsoft 365 business plan, configure your company's tenant, and get your employees connected.
Setting up Microsoft 365 for a business involves purchasing the correct licensing tier, configuring your unique company environment (tenant), linking your professional domain, and onboarding users.
Navigate to the Microsoft 365 business products page. Compare the features of Business Basic, Business Standard, Business Premium, and Apps for business. Click 'Buy now' on the plan that aligns with your company's needs.
Follow the on-screen setup wizard to enter your contact email, create a new business identity (which generates your initial .onmicrosoft.com tenant), and provide your billing information to finalize the purchase.
Log in to the Microsoft 365 admin center. Go to 'Settings' and select 'Domains'. Click 'Add domain' to connect a domain you already own, or select 'Buy domain' to purchase a new professional web address directly through Microsoft.
If you are connecting an existing domain, Microsoft will provide you with specific TXT or MX records. Log in to your domain registrar's control panel, navigate to the DNS settings, and add these records to verify that you own the domain.
In the Microsoft 365 admin center, navigate to 'Users' > 'Active users' and click 'Add a user'. Fill in the employee's name and desired email address, assign them an appropriate Microsoft 365 license, and securely share their temporary password with them.
Instruct your new users to log in to office.com using their newly created credentials. From the dashboard, they can access their business email (Outlook) and click 'Install apps' to download the Office desktop applications to their computers.

Equip Your New Company with WPS Office for Free
Before committing to expensive Microsoft 365 subscription tiers for every employee, consider deploying WPS Office. It provides a lightweight, highly compatible, and free alternative for essential document creation, spreadsheet analysis, and presentations, helping startups minimize early overhead costs.
- 1. Download WPS Office: Visit the official WPS website and download the free installer for your operating system.
- 2. Install and Deploy: Run the installer and follow the straightforward prompts to install the software on your company devices.
- 3. Start Creating: Open WPS Office and immediately start editing Word, Excel, and PowerPoint files without a complex tenant setup.

Frequently Asked Questions
Which Microsoft 365 business plan is best for a startup?
Business Basic is ideal if your team only needs web and mobile apps alongside cloud storage and custom email. Business Standard is recommended if your employees require the fully featured desktop versions of Office applications like Word, Excel, and PowerPoint.
Do I need to already own a domain name before setting up Microsoft 365?
No. While it is highly recommended to have a custom domain for a professional email appearance (e.g., name@yourcompany.com), you can begin with the default .onmicrosoft.com address or purchase a new domain directly within the Microsoft 365 setup wizard.
How long does the domain verification process take?
Once you add the required DNS records to your domain registrar, verification in the Microsoft 365 admin center usually takes just a few minutes. However, in some rare cases, DNS changes can take up to 48 hours to fully propagate globally.
Can I mix and match different Microsoft 365 licenses within my company?
Yes, a single Microsoft 365 tenant can hold multiple types of subscriptions. You can purchase Business Basic licenses for frontline workers and Business Premium licenses for executives, assigning them individually based on each user's specific needs.




