If you need to collaborate with people outside your organization on documents in SharePoint or OneDrive, you can send them a sharing-link to the document. In this article, we'll walk through the Microsoft 365 configuration steps necessary to set up sharing-links for SharePoint and OneDrive for the needs of your organization.
Video demonstration
This video shows the configuration steps described in this document.
Microsoft Entra External ID external collaboration settings
Sharing in Microsoft 365 is governed at its highest level by the external collaboration settings in Microsoft Entra External ID. If guest-sharing is disabled or restricted in Microsoft Entra External ID, this setting overrides any sharing settings that you configure in Microsoft 365.
Check the external collaboration settings to ensure that sharing with guests isn't blocked.
In the left navigation pane, expand External identities.
Select External collaboration settings.
Ensure that either Member users and users assigned to specific admin roles can invite guest users including guests with member permissions or Anyone in the organization can invite guest users including guests and non-admins is selected.
If you made changes, select Save.
Note the settings in the Collaboration restrictions section. Make sure that the domains of the guests that you want to collaborate with aren't blocked.
If you work with guests from multiple organizations, you might want to restrict their ability to access directory data. This prevents them from seeing who else is a guest in the directory. To do this, under Guest user access restrictions, select Guest users have limited access to properties and membership of directory objects settings or Guest user access is restricted to properties and memberships of their own directory objects.
SharePoint organization-level sharing settings
In order for people outside your organization to have access to a document in SharePoint or OneDrive, the SharePoint and OneDrive organization-level sharing settings must allow for sharing with people outside your organization.
The organization-level settings for SharePoint determine the settings that are available for individual SharePoint sites. Site settings can't be more permissive than the organization-level settings. The organization-level setting for OneDrive determines the level of sharing that's available in users' OneDrive libraries.
For SharePoint and OneDrive, if you want to allow unauthenticated file and folder sharing, choose Anyone. If you want to ensure that people outside your organization have to authenticate, choose New and existing guests. Anyone links are the easiest way to share: people outside your organization can open the link without authentication and are free to pass it on to others.
For SharePoint, choose the most permissive setting that's needed by any site in your organization.
To set SharePoint organization-level sharing settings
In the SharePoint admin center, in the left navigation pane, under Policies, select Sharing.
Ensure that external sharing for SharePoint or OneDrive is set to Anyone or New and existing guests. (Note that the OneDrive setting can't be more permissive than the SharePoint setting.)
If you made changes, select Save.
SharePoint organization-level default link settings
The default file and folder link settings determine the link option that's shown to users by default when they share a file or folder. Users can change the link type to one of the other options before sharing, if desired.
Keep in mind that this setting affects SharePoint sites in your organization, as well as OneDrive.
Choose a link from any of the following types, which is then selected by default when users share files and folders:
Anyone with the link - Choose this option if you expect to do a lot of unauthenticated file and folder sharing. If you want to allow Anyone links but are concerned about accidental unauthenticated sharing, consider one of the other options as the default. This link type is only available if you've enabled Anyone sharing.
Only people in your organization - Choose this option if you expect most file and folder sharing to be with people inside your organization.
Specific people - Consider this option if you expect to do many file and folder sharing with guests. This type of link works with guests and requires them to authenticate.
To set the SharePoint and OneDrive organization-level default link settings
Work with external users in Teams and the access controls from different places, including Microsoft Entra ID, Microsoft 365, Teams, and SharePoint admin centers.
Demonstrate skills to plan, deploy, configure, and manage Microsoft Teams to focus on efficient and effective collaboration and communication in a Microsoft 365 environment.