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License & Subscription Issues

How to Purchase and Set Up Microsoft 365 for a New Company

Huda QurayshiHuda Qurayshi Sep 30, 2026 869 views

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.

How to Purchase and Set Up Microsoft 365 for a New Company
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.
Before you start

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.

Solution 1Recommended

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.

1
Select a Microsoft 365 Business Plan

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.

2
Set Up Your Account and Tenant

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.

3
Connect Your Custom Domain

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.

4
Verify Domain Ownership via DNS

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.

5
Create User Accounts and Assign Licenses

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.

6
Configure Services and Install Office

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.

Complete Microsoft 365 Business Setup Guide
Tip for Seamless Onboarding: If domain verification seems complex, many popular registrars offer automated connection options during the Microsoft 365 setup wizard, which can automatically add the required DNS records for you.
Free Microsoft Office alternative

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. 1. Download WPS Office: Visit the official WPS website and download the free installer for your operating system.
  2. 2. Install and Deploy: Run the installer and follow the straightforward prompts to install the software on your company devices.
  3. 3. Start Creating: Open WPS Office and immediately start editing Word, Excel, and PowerPoint files without a complex tenant setup.
Free and highly cost-effective for startups and growing businessesSeamlessly compatible with all major Microsoft Office formats (DOCX, XLSX, PPTX)Lightweight installation with an intuitive, tabbed user interfaceBuilt-in PDF editing tools for comprehensive document management
microsoft office alternative - wps office

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.