Managing who has access to what is a big part of keeping your systems secure. Whether you’re running a small business or supporting a growing team, Azure Entra ID helps you manage identities and access in the cloud. It replaces the older Azure Active Directory name but keeps all the core features intact.

This guide is designed to help you get started with Azure Entra ID in a simple, step-by-step way. By the end, you’ll have a basic setup that supports users, apps, and security policies—no advanced tech skills required.

Know What You’re Working With First

Before starting the setup, it’s important to understand what Azure Entra ID actually does. This isn’t just another Microsoft tool—it’s the backbone of identity management in the cloud.

If you need a clear breakdown of how it works, why the name changed from Azure AD, and what features it offers, check out this introductory guide to Azure Entra ID. It’ll help you follow the next steps with more clarity.

How to Set Up Azure Entra ID: Step-by-Step Guide

Once you understand the basics, it’s time to start setting things up. Follow these steps in order to build a secure and functional identity management system using Azure Entra ID.

Step 1: Create Your Azure Account

To use Azure Entra ID, you need access to the Azure portal.

• Visit https://portal.azure.com
• Sign in with your Microsoft account or create a new one
• Choose a plan or start with the free trial

Once logged in, you’ll land on the main Azure dashboard.

Step 2: Open Microsoft Entra ID

Now that you’re in the portal:

• In the left menu or top search bar, type “Microsoft Entra ID”

• Click to open the Entra ID dashboard
• This is your main control panel for all identity-related settings

Here you can manage users, groups, apps, and policies.

Step 3: Add Your First User

To manage access, you first need users.

• Click on Users > + Create New user

• Fill in the user details: name, username, and role (e.g., User or Administrator)

• Optionally, set a temporary password and force a password reset on first sign-in

You can repeat this process or upload multiple users via CSV for bulk creation.

Step 4: Organize with Groups

Grouping users helps manage permissions easily.

• Go to Groups > + New group

• Choose the group type (Security or Microsoft 365)
• Name the group and add users

For example, you can create groups for HR, IT, or Sales and assign policies by group instead of by user.

Step 5: Register an Application

This step is needed when you want Entra ID to manage app logins.

• From the left side menu, click manage and select App registrations > + New registration

• Name the app and set a redirect URI (if applicable)
• After creating it, copy the Application (client) ID for later use

You can now configure permissions, API access, and branding for the app.

Step 6: Set Up Single Sign-On (SSO)

SSO lets users log in to apps with one account.

• Go to Enterprise applications
• Select your app or add a new one

• Under Manage, click Single sign-on

• Choose the method (SAML, OIDC, etc.) and follow the setup steps

Test the configuration before rolling it out company-wide.

Step 7: Review Sign-In and Audit Logs

Monitoring is key for security.

• Go to Monitoring > Sign-in logs and Audit logs

• Check who logged in, from where, and what actions were taken
• You can also set up alerts for suspicious activity

These logs help you spot and respond to risks early.

Conclusion

Setting up Azure Entra ID may seem like a lot at first, but when broken down into steps, it’s very manageable. You now know how to:

• Create your account
• Add users and groups
• Register apps and set up SSO
• Enable security tools like MFA and conditional access
• Monitor sign-ins and system activity

Take your time with each step, and don’t rush the setup. A strong identity foundation helps protect your business from the start.