How To Create A Folder On SharePoint
Introduction
In today’s digital-first business environment, effective document management is no longer optional—it’s essential. Microsoft SharePoint, available through Microsoft 365, is a powerful collaboration tool that allows businesses to streamline file storage, document sharing, and workflow processes. Whether you are using SharePoint Online or SharePoint Server, organizing documents into a clear folder structure within a Document Library can make all the difference in productivity.
In this extended guide, we’ll cover folder creation in SharePoint, explain the differences between the Modern and Classic experiences, and provide best practices for managing folder content types, folder names, and folder permissions. We’ll also explore advanced considerations such as security trimming, managed navigation, site contents, REST API integration, and even Microsoft 365 Copilot support.
Understanding SharePoint Folders
What is a SharePoint folder?
A SharePoint folder is a container within a Document Library or list that allows you to create files, organize them logically, and enhance your business’s document management system. Think of it as the digital equivalent of filing cabinets.
Where can you create folders in SharePoint?
- Document Libraries: Designed for file storage and document sharing.
- Lists: Best for list items and structured data.
- Pages Library: Used for site pages and organizing rich content.
Folders vs. metadata organization.
- Folders: Use when you want a hierarchical structure (e.g., Finance > Invoices > 2025).
- Metadata: Use for dynamic filtering and reporting (especially when working with large datasets, workflow processes, or JSON parsing).
Folder nesting and inheritance.
You can create subfolders (Folder 1, Folder 2, etc.) under a parent folder or even a pre-existing folder. With features like managed navigation, structural navigation, and breadcrumbs, teams can stay oriented as they work.
Prerequisites & Permissions
Required permissions for folder creation.
You need Contribute or Edit rights to create a folder. The library owner can configure this via library settings.
Checking your permissions.
Go to List Settings or Library Settings, check your permission level, and confirm you have access. If you don’t, contact the site owner or admin.
When the “New Folder” button is missing.
If the command bar doesn’t show a “New Folder” button, the Advanced settings of that SharePoint Online Document Library or SharePoint Server 2019 library may have disabled the Folder content type. The library owner can re-enable it.
Step-by-Step: Creating a Folder in a Document Library
Step 1: Go to your SharePoint site and navigate to the Document Library. You can also use the Quick Launch bar or Quick Launch menu to find Team Files or other site contents.
Step 2: On the command bar, click + New > Folder.
Step 3: Enter a descriptive folder name. Avoid vague names—use business-relevant labels (e.g., HR-Policies instead of Folder 1).
Step 4: Confirm folder creation. The new folder will appear in your library alongside other files and folders.
Quick Reference (HTML Table):
| Step | Action |
|---|---|
| 1 | Navigate to Document Library |
| 2 | Click + New > Folder on the command bar |
| 3 | Enter a Folder Name and click Create |
| 4 | Verify Folder Creation |
Pro Tip: Use drag and drop to quickly move files into your new folder.
Modern vs. Classic SharePoint Experience
Modern Experience (SharePoint Online):
- Clean, user-friendly UI.
- Supports drag and drop and easy integration with Microsoft Graph API and Microsoft 365 Copilot.
- Folder creation is simple via the New Folder button.
Classic Experience (SharePoint Server or legacy sites):
- More traditional UI.
- Folder creation requires the Files tab or ribbon interface.
Key difference: Modern supports AI-driven features like large language models, better workflow automation, and tight integration with tools like MS Forms, Form submission workflows, and Microsoft Authentication.
Creating Folders in SharePoint Lists
Steps:
- Open the list.
- Go to the Items tab.
- Select New Folder.
- Assign a folder name and save.
Comparison Table:
| Aspect | Document Libraries | Lists |
|---|---|---|
| Folder Support | Yes | Yes |
| Creation Method | + New > Folder (command bar) | Items tab > New Folder |
| Data Type | Files and Folders | List Items |
| Templates | Document Library templates | Custom List templates |
Organizing with Nested Folders
How to create subfolders.
Go into a parent folder or top-most folder, then repeat the folder creation process.
Breadcrumb navigation.
Breadcrumbs show the path of your current folder, making it easier to track parent item IDs and locations.
Naming conventions.
Use consistent folder names, avoid special characters, and think about future-proofing. For example: Engineering > Aircraft Model Type > Serial Number.
Managing and Renaming Folders
- Renaming a folder: Right-click > Rename > Save.
- Moving files: Drag and drop or use the Move To function.
- Deleting & restoring: Deleted folders go to the Recycle Bin and can be restored.
Advanced tip: For workflow processes, you can use Power Automate with parse JSON actions to automatically organize or move documents after form submissions.
Troubleshooting Common Issues
Issue: Can’t create a folder.
Check Advanced settings to confirm that Folder content type is enabled.
Issue: Folder not visible.
This could be due to security trimming or view filters. Adjust library settings or contact the library owner.
Issue: Folder structure not syncing.
Check Microsoft Authentication settings or troubleshoot with the SharePoint connector in Power Automate.
Resources for help:
- Microsoft Support community
- Atlassian University and Atlassian Community Events (for cross-platform workflows)
- Stack Overflow & Stack Exchange Network for developer questions
Best Practices for Folder Structure
- Plan ahead: Design your folder hierarchy with scalability in mind.
- Balance folders vs. metadata: Use folders for hierarchy, metadata for advanced filtering.
- Use consistent naming: Example: Finance-2025-Invoices instead of Folder 1.
- Keep security in mind: Apply security trimming at the folder level to protect sensitive data.
- Consider automation: Use REST API, Graph API, or Power Automate to automate folder management.
Frequently Asked Questions
- Can I restrict folder access?
Yes, via folder-level permissions. - Is there a limit to folders?
SharePoint supports thousands, but performance may suffer. Use metadata where possible. - Folders vs. Document Sets?
Document sets are enhanced folders with richer functionality for related documents. - Do folders impact search?
A well-designed folder structure improves discoverability. Poorly structured libraries reduce efficiency. - Can I create folders on mobile?
Yes, via the SharePoint mobile app. - What’s different in SharePoint Server 2019?
It supports both Modern and Classic experiences, giving you flexibility in managing libraries and site pages. - Can I integrate folder creation with automation?
Yes—via Power Automate using triggers like MS Form submissions, REST API calls, or Graph API send web request actions.
Additional Resources
- Microsoft Support Community
- Stack Overflow and Stack Exchange Network for troubleshooting
- Atlassian University and Atlassian Community Events for cross-tool learning
- REST API and Graph API documentation
- Professional consulting from Enabla Technology
Conclusion
By understanding and implementing effective folder creation and folder structure strategies, your business can optimize SharePoint Online Document Libraries, SharePoint Server libraries, and site pages. From New Folder buttons in Modern SharePoint to Classic experience settings, every step contributes to a more structured and efficient document management approach.
👉 If you want expert guidance on optimizing SharePoint, automating folder creation, or integrating it with tools like Microsoft 365 Copilot or Power Automate, contact Enabla Technology. We help Australian businesses streamline IT systems, scale operations, and stay competitive in an industry in flux.
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