The framework for legally deploying and using Microsoft Exchange Server or Exchange Online, based on server and client access models.
Assign the user a separate Microsoft 365 Business Basic license that includes Exchange Online; creating the account alone does not activate an email mailbox.
Complete the existing user setup
- Sign in to the Microsoft 365 admin center with a License Administrator or User Administrator account.
- Go to Users → Active users.
- Select the user you already created.
- Open Licenses and apps.
- Assign Microsoft 365 Business Basic and ensure Exchange Online is enabled under its apps.
- Save the changes. The Exchange Online service then provisions the user's mailbox; an unlicensed account is only a sign-in identity and cannot use email ^1^.
- Give the user their Microsoft 365 username and temporary password securely. They can then sign in to Outlook and change the password if required.
Microsoft documents that each person needs a user account and an assigned license to use Microsoft 365 business services ^2^.
Do you need another license?
Yes, if this is a second person who needs an independent mailbox and sign-in. Microsoft 365 Business Basic is licensed per user, so one license cannot cover two employees ^3^.
If no license is available:
- In the admin center, go to Billing → Purchase services.
- Purchase one additional Business Basic license.
- Return to Users → Active users, select the user, and assign it.
If “Basic” means the consumer Microsoft 365 Basic plan rather than Microsoft 365 Business Basic, it does not support adding business users with independent organizational mailboxes. A Microsoft 365 business subscription is required.
If your company domain is not ready
If the intended address is something such as [Email], first add and verify that domain in Microsoft 365, then assign the address to the user. Microsoft’s activation sequence is: verify the business domain, add users and assign licenses, and then sign in to Outlook ^4^.
After provisioning, select the user under Users → Active users → Mail to manage their email settings. If the Mail tab still does not appear, check that Business Basic is assigned and Exchange Online is enabled for that user.
References