September 8, 2025

How Do You Create A Folder In SharePoint

Introduction

SharePoint, a core part of Microsoft 365, is more than just a collaboration tool – it’s a complete document management platform designed to streamline file storage, collaboration, and compliance. For Australian business owners managing teams of 20–250 staff, mastering folder creation and structure in SharePoint libraries is key to keeping workflows efficient and data secure.

This guide provides a step-by-step explanation of how to create folders, subfolders, and organised structures within a Document Library. By the end, you’ll understand how to use Advanced settings, customise your folder structure, and optimise SharePoint libraries as part of your broader document management system.

What is a Folder in SharePoint?

A folder in a SharePoint site is an organisational unit used within a Document Library or List. Just as physical filing cabinets keep papers tidy, folders in SharePoint create logical folder structures that help you manage Word documents, Excel workbooks, PowerPoint presentations, OneNote notebooks, and Visio drawings.

SharePoint supports:

  • SharePoint Online (Modern Experience) – cloud-based, integrated with Microsoft 365 apps, supporting real-time analytics and Microsoft 365 Copilot.
  • SharePoint Server 2019 (On-premises) – for organisations requiring local hosting.
  • SharePoint Classic Experience – still available for businesses with legacy site collections and site contents.

Using folders effectively improves:

  • File retrieval with the search box and metadata columns.
  • Navigation via Quick Launch bar, command bar, Tiles view, or list view.
  • Collaboration with external users, managed via Link settings, Manage Access, and sharing experience.

Prerequisites for Creating Folders

Before creating folders, ensure:

  • Access level: You need Contribute or higher.
  • Library owner permissions: Only library owners can update library settings or List settings.
  • New Folder command enabled: Go to Library Settings → Advanced settings → enable “New Folder”.
  • Supported versions: Works across SharePoint Online, SharePoint Server 2019, and Classic Experience.

Step-by-Step Guide: Creating a Folder in SharePoint

A. Creating a Folder in SharePoint Online (Modern Experience)

  1. Navigate to your SharePoint site URL.
  2. Go to Site contents → select the Document Library.
  3. Click + New on the command bar.
  4. Choose Folder.
  5. Enter a Folder name (e.g., Folder 1).
  6. Click Create.

B. Creating Nested Folders

  1. Open the parent Folder path.
  2. Repeat the above steps.
  3. Use the breadcrumb trail for quick navigation.

C. Creating a Folder in Classic Experience

  1. Open your Document Library in the Classic Experience.
  2. Go to Files tab → New Folder command.
  3. Name your folder and click Create.
  4. If missing, enable the command via Library Settings → Advanced settings.

D. Creating a Folder via API or Automation

Advanced users can:

  • Use Microsoft Graph and large language models for automation.
  • Leverage bulk operations via PowerShell or third-party tools.
  • Integrate folder creation into IT Self-Service Portals or workflows.

Quick Reference — Folder Creation

Experience Steps Summary
Modern/Online + New → Folder → Name → Create
Classic Files tab → New Folder → Name → Create
Nested Folders Enter parent folder first, then repeat steps

Best Practices for Organising Folders in SharePoint

  1. Descriptive Names – Keep Folder names meaningful and consistent.
  2. Limit Folder Nesting – Avoid too many layers that exceed the list view threshold.
  3. Use Metadata Columns – Add fields like Column type: Hyperlink or Picture or Task Outcome for flexible filtering.
  4. Leverage Managed Navigation & Structural Navigation – Improve discovery in the Quick Launch menu and Site Actions.
  5. Combine Folders + Metadata – Use folders for broad categories, metadata for precision.

Troubleshooting & Tips

  • “New Folder” missing? Enable it in Advanced settings.
  • Move or copy files: Use the Move or Copy option in the command bar.
  • Restore folders: Recover via Recycle Bin.
  • Manage Access: Control who can view, edit, or share via the Manage access dialog box.
  • External sharing: Configure shareable links, set an expiration date, or restrict to view-only permissions.
  • Shared with Everyone folder: Be cautious—files here may be visible to all Microsoft Account users.

Frequently Asked Questions (FAQs)

1. Can I create folders in Lists as well as Libraries?
Yes. Use List name → List settings → Add fields to create organisational structures.

2. How do folder permissions work?
They can inherit from the library or be uniquely set.

3. Can folders be reorganised?
Yes, with drag-and-drop, Copy link, or the Move To option.

4. Is there a folder limit?
SharePoint supports millions of items, though the list view threshold may apply.

5. How do I search inside folders?
Use the search box or enable content filtering.

Benefits of Using Folders in SharePoint

Benefit Description
Better Organisation Logical folder nesting improves retrieval speed
Flexible Categorisation Sort by project, client, or department
Improved Navigation Quick Launch bar, Tiles view, list view
Collaboration Controlled file sharing with external users
Integrated File Storage Supports Word documents, Excel workbooks, PowerPoint presentations, OneNote notebooks, Visio drawings

Conclusion

Strong folder structures and metadata strategy ensure SharePoint is more than just a file repository – it becomes a complete document management system. By setting up folders, managing permissions, and leveraging Microsoft 365 integrations like Office for the web, your business can:

  • Streamline document management.
  • Improve collaboration tools across teams.
  • Enable controlled external sharing with confidence.
  • Reduce reliance on Google Drive and other cloud drives.

If your organisation needs expert guidance on SharePoint folder creation, organising pages, or building an efficient document management platform, Enabla Technology’s IT Service Desk is here to help. We provide consulting, training, and managed IT solutions for Australian businesses.

Leave a Reply