Create a User and Custom Domain in Entra ID

Since Microsoft Entra (formerly Azure Active Directory) tenants come with an initial domain name like “<name>.onmicrosoft.com” that you can not change or delete. But you can add your organization’s DNS name as a custom domain and set it as the primary domain. Therefore, in this article, I will show you how to create a User and Custom Domain in Entra ID. Please see AADSTS50020: User from Identity Provider does not exist in Tenant, and Delete Azure Tenant: Remove Custom Domain from Entra ID.

Note: Before you can add a custom domain name, create your domain name with a domain registrar if you do not already have one.

Make sure the domain name isn’t already in use in another directory. A domain name can only be verified in one directory. If your domain name is currently verified in another directory, it can’t also be verified in the new directory. To fix this duplication problem, you must delete the domain name from the old directory

Also, see how to add and verify a custom domain name to Azure Active Directory, how to Install OpenSSL on Windows Computers, and Why is BitLocker unable to encrypt Removable Drives via MBAM?

Why Create a Custom Domain?

Creating a custom domain in Entra ID provides several advantages, especially for organisations and businesses looking to maintain a professional identity and streamline their cloud environment.

Using a custom domain for instance techdirectarchive.com instead of the default onmicrosoft.com domain enhances your brand’s uniqueness.
A custom domain simplifies SSO configuration for applications by using your organisation’s domain for authentication.

The list is endless! Therefore, we will be adding a custom domain and this will require us to verify our domain via DNS records

Please see how to “Register Devices to Intune and EntraID Using Company Portal“, how to create a custom view in Windows Event Viewer, and how to Join Bulk Devices using a Provisioning Package to Azure.

Add a Custom Domain in Entra ID

To add a custom domain, please log in to the Azure Portal with an Log in with an account that has Global Administrator permissions.

Search for Entra ID, and click on it. In the left-hand navigation, select Custom domain names and click on “Add custom domain“.

Enter your domain name, and click on Add Domain.

You will be required to verify your domain. As you can see below, we have the option to create a TXT or MX record with my Domain Name Registrar with the information below.

Add your DNS information to the domain registrar

To do this, I will navigate to WordPress in order to create a DNS record. Add the required TXT record to your domain DNS settings.

After creating the record, Save the DNS changes and return to the Entra ID portal by clicking on Add DNS Record as shown below.

After updating the DNS record, click Verify in the Entra ID portal to confirm domain ownership. Entra ID will check the DNS records and verify your ownership.

domain verification — Note: DNS records must propagate before you can verify the domain. This process can take an hour or more.

As you can see below. We have successfully verified our domain name.

Next, we will have to make the Domain the primary domain in order to simplify our user authentication.

Since I still have the blade open, I will have to enable my account the ability to manage all Azure subscriptions and management groups by setting, To do this, enable the switch below.

Once the domain is verified, you can make it the default domain for new user accounts

Please see Domain Name System: How to create a DNS record, and Domain Name System Protocol: Client Registration Issue. Also, see How to setup a Third-Party DNS Server on a Linux Server.

Make Custom Domain Primary

Navigate to Entra ID and click on Custom domain names. Click on your custom domain and select Make primary.

In the confirmation window below, select “Yes” to make it the primary domain.

That is all that you need to do to create and make a custom Domain primary in Entra ID.

Create a User in Entra ID

Launch Entra ID and select All Users as shown below. Click on New user and then on “Create new user”

Please populate the new user window with the basic information, and click on “Review and Create”, or on Next “Properties” and then to Assignment as you wish.