How To Create Folders In Sharepoint
For growing Australian businesses, effective document management is no longer optional. As teams expand beyond 20 staff, poor file organisation leads to wasted time, version confusion, security risks, and frustrated employees. Microsoft SharePoint Online, SharePoint Server, and Microsoft 365 provide powerful tools to manage documents, pages, data, and collaboration — but only when they are structured correctly.
At the heart of SharePoint is the document library. Each document library stores SharePoint files such as Word documents, an Excel file, PDFs, images, and other binary file types, as well as structured data like XML content type, external data, and files with a file attachment.
This guide explains folder creation in SharePoint, how to design a scalable folder structure, and how folders interact with SharePoint libraries, SharePoint views, metadata, automation, and reporting. Whether you are using SharePoint Online, SharePoint Server 2019, or hybrid environments, this article is written to help Australian businesses design SharePoint environments that scale — not break — as the organisation grows.
Understanding SharePoint Document Libraries
A SharePoint document library is a secure container for storing and managing files, list items, and related content. SharePoint libraries support:
- Files such as Word, PDF, and Excel file formats
- A list item with metadata and versioning
- Binary file storage with permissions and audit history
- Structured formats like XML content type
- Integration with external data sources
In modern SharePoint, libraries are far more powerful than traditional file shares. Each library includes library settings, List settings, version control, approval workflows, and automation hooks via Power Automate.
Folders, Views, and Metadata
Folders are only one method of organising content inside SharePoint libraries. Other methods include:
- SharePoint views for filtering and sorting
- Metadata columns for classification
- Automation using Power Automate flow logic
Most Australian SMEs benefit from a hybrid approach: limited folder depth for familiarity, combined with metadata and views for scale.
Folders vs Views in SharePoint – Pros and Cons
| Aspect | Folders | SharePoint Views |
|---|---|---|
| Strengths | Familiar file system modelEasy adoption for users | Advanced filtering capabilitiesScales better in large libraries |
| Limitations | Over-nesting causes complexityHarder governance | Requires planningLess familiar to new users |
Folders define structure, while views control how users see data — both are essential.
Prerequisites, Permissions, and Management Settings
Before starting folder creation, ensure the correct permissions are in place. Typically:
- Users require Contribute access or higher
- A library owner or SharePoint administrator controls global settings
If the “New Folder” command is missing, it may be disabled in Advanced settings.
Make “New Folder” Command Available
- Open the document library
- Select Library settings
- Go to Advanced settings
- Ensure Make “New Folder” command available is set to Yes
This setting is often disabled as part of governance or migration projects.
Checking Permissions
- Navigate to the library
- Select Settings (⚙️) → Library settings
- Open Permissions for this document library
If access is restricted, your SharePoint administrator or managed IT provider must adjust the management settings.
Step-by-Step Guide: Creating Folders in SharePoint
Creating a Folder in Modern SharePoint (Microsoft 365 / SharePoint Online)
- Open your SharePoint site
- Navigate via the Quick Launch bar to the document library
- Click + New → Folder
- Enter a folder name (this becomes the folder display name)
- Click Create
The folder appears instantly and inherits permissions from the library.
Creating Nested Folders (Subfolders)
- Open the parent folder
- Click + New → Folder
- Name the subfolder
⚠️ Best practice is no more than 3–4 levels deep to avoid navigation and sync issues.
Creating Folders in SharePoint Server and Classic Experience
In SharePoint Server and SharePoint Server 2019, you may see the classic ribbon:
- Select New → Folder from the top menu
Many legacy environments still rely on this interface.
Folder Naming and Renaming Best Practices
To rename a folder:
- Right-click → Rename
Recommended Naming Conventions
| Use Case | Example |
|---|---|
| Projects | ProjectName_2025 |
| Departments | Finance_Policies |
| Clients | ClientName_Contracts |
Clear naming improves search, automation, and reporting accuracy.
Uploading SharePoint Files and Creating Subfolders
Uploading Files
- Open the folder
- Click Upload → Files
- Select files from your device
Drag-and-drop also works and preserves metadata in many cases.
Each uploaded file becomes a managed SharePoint file that can be:
- Used in Power Apps
- Referenced by Power Automate flow logic
- Included in reporting tools like Power BI
Organising Pages, Site Pages, and Navigation
Folders are not only for documents. SharePoint also uses libraries such as:
- Pages library
- Site pages for modern sites
Organising Pages and Navigation
When organising pages, consider:
- Structural navigation (hierarchy-based)
- Managed navigation (metadata-driven)
- Local navigation for department or team pages
Well-organised pages improve usability, adoption, and governance.
Troubleshooting Common Folder Issues
“New Folder” missing
Check Advanced settings, permissions, and governance policies.
Folder not visible
Refresh browser, check filters, or confirm view settings.
Access denied
Verify inheritance and unique permissions.
Best Practices for Folder Structure in SharePoint
- Use folders for high-level structure only
- Avoid deep nesting
- Combine folders with metadata and SharePoint views
- Standardise naming and ownership
- Document rules for staff
This dramatically reduces IT support requests.
Advanced Folder Management, Automation, and Integration
Automation and Power Platform
Folders can be created automatically using:
- Power Automate
- Custom Power Automate flow logic
- Integration with Microsoft Power Platform
Custom Logic and APIs
Advanced environments may use:
- REST service calls
- OData resources and OData $batch query
- ResourcePath API
- JavaScript object model
- Client library code referencing a schema name
These approaches are common in enterprise-grade deployments.
Reporting, Analytics, and Power BI
Structured libraries enable powerful reporting using Power BI:
- Build a Power BI dataset from SharePoint
- Create a Power BI report using the Power BI option in Microsoft 365
- Track usage, ownership, and compliance
Events like FabCon Atlanta in the United States, the Power BI Data Visualization World Championships, and the Power BI Monthly Update regularly showcase how SharePoint data feeds enterprise analytics — even during initiatives like the Season of Giving campaigns.
Frequently Asked Questions
Can folders be automated?
Yes, via Power Automate and APIs.
Can folders store external data?
Files can reference external systems via connectors and metadata.
Can deleted folders be restored?
Yes, from the Recycle Bin within retention limits.
Conclusion
Folders remain an important part of SharePoint — but only when implemented strategically. By combining smart folder structures with metadata, automation, and reporting, Australian businesses can turn SharePoint into a scalable, secure content platform.
Poor structure creates technical debt. Good structure enables growth.
Need Expert Help With SharePoint?
Enabla Technology helps Australian organisations design, secure, and optimise SharePoint environments across SharePoint Online, SharePoint Server, and Microsoft 365.
We specialise in:
- SharePoint architecture and governance
- Folder and library design
- Power Automate and Power Platform integration
- Security, permissions, and compliance
- Ongoing managed IT services
If your SharePoint environment feels cluttered or difficult to manage, it’s time for expert guidance.
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