December 8, 2025

How To Create A Folder In Sharepoint

Introduction

SharePoint is one of the most widely used document management systems across Australian organisations, especially those using Microsoft 365 for collaboration and file storage. Whether you’re using SharePoint Online, SharePoint Server 2016, or SharePoint Server 2019, your team relies heavily on well-organised document libraries to store Word documents, PDFs, reports, spreadsheets, and project files.

A structured folder hierarchy helps staff find documents quickly and ensures consistent document management across your site collection. In this enhanced guide, you’ll learn everything about creating a folder, applying Folder permissions, managing List settings, and using advanced SharePoint features such as Managed Metadata, content types, and SharePoint views—while preparing your business to scale with tools like Microsoft Teams, Dynamics 365, and the Microsoft Power Platform.

Understanding SharePoint Document Libraries

A SharePoint Document Library is a secure storage location within your SharePoint site used to upload, organise, and collaborate on documents. Within these SharePoint libraries, your team can build a logical folder structure using a clear Folder name, tags, metadata categories, and security boundaries.

SharePoint supports:

  • List view, Tiles view, and custom SharePoint views
  • Metadata-driven navigation using Managed Metadata
  • Document Sets for advanced project-based document grouping
  • Content type gallery for applying templates and metadata rules
  • Metadata inheritance for consistent classification

These features ensure your library remains scalable, maintains compliance, and avoids the list view threshold issues common in large libraries.

Prerequisites for Creating a Folder in SharePoint

Before you begin, check the following:

  • You have permission for folder creation (Contribute, Edit, or Design).
  • The advanced settings in the library settings allow the New Folder command.
  • You are working in the correct target document library.
  • You have the correct SharePoint site URL.
  • External access is restricted or enabled, depending on requirements for external users.
  • Your organisation complies with the Microsoft Services Agreement.

If you are still using the SharePoint Classic experience, the interface will differ slightly from the modern SharePoint Online layout.

Step-by-Step Guide: Creating a Folder in SharePoint Online (Modern Experience)

Follow these simple steps to Create new folder inside your library:

  1. Navigate to your SharePoint site and open the required library.
  2. Go to the Folder section of the library.
  3. Click the + New button.
  4. Select Folder from the menu.
  5. Enter a descriptive Folder name.
  6. Click Create.

If the folder does not appear immediately, refresh your browser. This works across team sites, communication sites, and integrated environments such as Microsoft Teams.

This method works whether you’re storing a Word document, financial report, or internal project files.

Creating Nested (Sub) Folders

A strong Folder hierarchy often includes multiple levels. To create subfolders:

  1. Open the parent folder.
  2. Select New Folder or the New Folder command again.
  3. Name your subfolder appropriately.

Use the breadcrumb navigation to track your path. Example:
Documents > Clients > Sydney > 2025 Projects > Reports

This method ensures clear folder paths, proper Folder URL consistency, and simpler long-term file organization.

Alternative Methods to Create Folders

SharePoint offers multiple ways to create folders across different devices and tools.

Using File Explorer (via OneDrive Sync)

  1. Sync the library using the OneDrive client.
  2. Open the library in File Explorer.
  3. Create folders normally.
  4. They sync automatically back to SharePoint.

This method is great for staff who prefer a Windows-based interface and often need to move or copy files quickly.

Using SharePoint Designer, PowerShell or APIs

Advanced users or IT administrators can use:

  • PowerShell for bulk folder creation.
  • HTTP requests with REST API.
  • SharePoint connector in Power Automate (Power Platform).

Automating folder creation ensures consistency across multiple departments or project templates.

Managing Folders After Creation

After creating folders, you can manage them through the interface:

  • Rename folder: Use the ellipsis (···) → Rename.
  • Delete folder: Remove folders that are no longer needed.
  • Move or copy files: Use the built-in commands or File Explorer syncing.
  • Folder permissions: Configure who can access the folder.

SharePoint provides detailed permission tools, including:

  • Manage access dialog box
  • Manage Access panel
  • Sharing column for visibility
  • Link settings for shareable link configuration
  • Ability to set view-only permissions, expiration policies, and more

You may also restrict access to sensitive areas, such as a Shared with Everyone folder, to reduce security risks.

When to Use Folders vs. Metadata and Views

Folders are useful—but overusing them can reduce productivity. SharePoint offers smarter ways to organise information:

Use folders when:

  • You need clearly defined project or department boundaries.
  • Your team prefers traditional folder options.

Use metadata and views when:

  • You need dynamic filters or grouped views.
  • You must manage large lists without performance risks.
  • You require consistent classification through content types.

You can also combine both approaches. For example:

  • Apply content types to a project folder.
  • Add fields using Add fields in the list.
  • Use Column type such as Hyperlink or Picture for better reporting.

SharePoint also supports both managed navigation and structural navigation, depending on the library type and site layout.

Common Issues and Troubleshooting

Here are common issues and solutions we often help clients with:

  • Missing New Folder command: Enable folder creation in advanced settings.
  • Folder not appearing: Refresh the page or verify syncing.
  • Naming restrictions: Avoid special characters or overly long names.
  • Large library performance issues: Use metadata to avoid hitting the list view threshold.
  • Inconsistent permissions: Review the Manage Access panel.
  • Broken Folder paths: Verify the Folder ID, Folder URL, and navigation structure.

FAQs

Can I create folders in all versions of SharePoint?
Yes—across SharePoint Online, SharePoint Server, and the SharePoint Classic experience.

Can I sync folders to my computer?
Yes—via OneDrive sync and File Explorer.

Can external users access folders?
Yes, if granted permission via a shareable link, with adjustable expiration dates in the links tab.

Can I customise folder permissions?
Yes—you can use the groups tab, customize permissions, and specify advanced access levels.

Can I upload multiple files into a folder?
Yes—drag and drop or use automated file upload workflows.

Conclusion

A well-structured SharePoint environment increases productivity, reduces errors, and modernises collaboration. Understanding folder creation, metadata, content types, and navigation best practices ensures your SharePoint environment remains scalable and efficient.

If your business needs help improving its folder structure, migrating to SharePoint Online, securing data, or automating document workflows with Microsoft Power Platform, Enabla Technology is here to support you.

Additional Enhancements

  • Tables comparing SharePoint Online vs SharePoint Server features
  • Tiles view screenshots
  • Templates for client or project folder structures
  • Navigation examples using managed vs structural navigation

Whether you’re supporting one team or your entire organisation, modern document management in SharePoint gives you the tools to keep everything organised, secure, and easy to find.

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