Quickstart: Create a management group with Azure PowerShell

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Management groups are containers that help you manage access, policy, and compliance across multiple subscriptions. Create these containers to build an effective and efficient hierarchy that can be used with Azure Policy and Azure Role Based Access Controls. For more information on management groups, see Organize your resources with Azure management groups.

The first management group created in the directory could take up to 15 minutes to complete. There are processes that run the first time to set up the management groups service within Azure for your directory. You receive a notification when the process is complete. For more information, see initial setup of management groups.

Prerequisites

  • If you don't have an Azure subscription, create a trial subscription account before you begin.

  • Before you start, make sure that the latest version of Azure PowerShell is installed. See Install Azure PowerShell module for detailed information.

  • Any Microsoft Entra ID user in the tenant can create a management group without the management group write permission assigned to that user if hierarchy protection isn't enabled. This new management group becomes a child of the Root Management Group or the default management group and the creator is given an Owner role assignment. Management group service allows this ability so that role assignments aren't needed at the root level. When the Root Management Group is created, users don't have access to it. To start using management groups, the service allows the creation of the initial management groups at the root level. For more information, see Root management group for each directory.

Create in Azure PowerShell

For PowerShell, use the New-AzManagementGroup cmdlet to create a new management group. In this example, the management group GroupName is Contoso.

New-AzManagementGroup -GroupName 'Contoso'

The GroupName is a unique identifier being created. This ID is used by other commands to reference this group and it can't be changed later.

If you want the management group to show a different name within the Azure portal, add the DisplayName parameter. For example, to create a management group with the GroupName of Contoso and the display name of "Contoso Group", use the following cmdlet:

New-AzManagementGroup -GroupName 'Contoso' -DisplayName 'Contoso Group'

In the preceding examples, the new management group is created under the root management group. To specify a different management group as the parent, use the ParentId parameter.

$parentGroup = Get-AzManagementGroup -GroupName Contoso
New-AzManagementGroup -GroupName 'ContosoSubGroup' -ParentId $parentGroup.id

Clean up resources

To remove the management group created above, use the Remove-AzManagementGroup cmdlet:

Remove-AzManagementGroup -GroupName 'Contoso'

Next steps

In this quickstart, you created a management group to organize your resource hierarchy. The management group can hold subscriptions or other management groups.

To learn more about management groups and how to manage your resource hierarchy, continue to:

Manage your resources with management groups