How to disable Office Groups and Teams creation the right way.

Why disable groups/ teams creation

Some companies want to permit access to group and our teams creation. There can be many reasons for this. For instance you want to disable the creation of groups and teams to be more in control over these features.

To do this the right way it is recommended that only certain users are able to create groups and teams. In order to perform this it is rather recommended to create a Universal Security Group (which is mail enabled). This group will be used only for group and team creation.

First steps

As mentioned before it is recommended to create a Universal Security Group (which is mail enabled). When you have Azure AD Connect in place you should create this group on-premise and sync this over to Azure AD. That means that you management will maintain On-premise.

You can also create this group in Azure AD itself. If that is your way to go you should just create a security group in Azure AD. Please understand that your management will be in AzureAD/ Office 365.

The Script

To disable the group/ teams creation you can run the script bellow from the Azure AD PowerShell module

$Settings = Get-AzureADDirectorySetting | Where-Object {$_.DisplayName -eq ‘Group.Unified’}
If ( !( $Settings)) {
# No Group.Unified object found, create new settings object from template
Get-AzureADDirectorySettingTemplate | Where-Object {$_.DisplayName -eq ‘Group.Unified’} | Select-Object -ExpandProperty Values
$Template = Get-AzureADDirectorySettingTemplate | Where-Object {$_.DisplayName -eq ‘Group.Unified’}
$Template | Select-Object -ExpandProperty Values
$Settings = $Template.CreateDirectorySetting()
$Settings[‘EnableGroupCreation’] = ‘false’
$Settings[‘AllowToAddGuests’] = ‘false’
$Settings[‘GroupCreationAllowedGroupId’] = ( Get-AzureADGroup -SearchString ‘Office365GroupTeamsAdmins‘).ObjectId
If ( Get-AzureADDirectorySetting | Where-Object {$_.DisplayName -eq ‘Group.Unified’} ) {
Get-AzureADDirectorySetting | Where-Object {$_.DisplayName -eq ‘Group.Unified’} | Set-AzureADDirectorySetting -DirectorySetting $Settings
Else {
New-AzureADDirectorySetting -DirectorySetting $Settings

And make sure there is a Synced universal mail enabled security group with the name Office365GroupTeamsAdmins. BecauseĀ  the user must be in the group Office365GroupTeamsAdmins to create groups and teams so all other users are not permitted.
Thanks to Michel de Rooij for this script
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