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dhansenfatbrandscom's avatar
dhansenfatbrandscom
Copper Contributor
Mar 12, 2026

Registering an application return quota limit error.

I have a brand new Microsoft 365 Business Premium tenant with approximately 490 users and 137 service principals. I am a Global Admin with a Business Premium license assigned. I have verified a custom domain. The "Users can register applications" setting is enabled.

When attempting to register an application I receive: "The directory object quota limit for the Principal has been exceeded."

I ran the following PowerShell to check the tenant quota:

Connect-MgGraph -Scopes "Organization.Read.All" $org = Get-MgOrganization $org.AdditionalProperties["directorySizeQuota"]

The total value returned is 500.

This appears to be a provisioning issue where the tenant's directorySizeQuota has not been updated to the standard 300,000 object limit despite having a verified domain and Business Premium licensing.

M365 support directed me to Azure support, and Azure support only allows billing tickets without a paid support plan.  Paid support plan options do not populate and the portal goes non-responsive.  Hoping someone here can advise or escalate.

3 Replies

  • SelinaKnow's avatar
    SelinaKnow
    Copper Contributor
    Jul 01, 2026

    A directorySizeQuota of only 500 for a Business Premium tenant definitely doesn't look normal. If your licensing and app registration settings are correct, this is most likely a backend provisioning or quota issue that only Microsoft can fix.

  • Jamony's avatar
    Jamony
    MCT
    Jun 30, 2026

    Hi, with a Business Premium tenant, a returned directory quota of 500 does look unusual if the tenant should have a much higher object limit. Since you already checked deleted objects and service principals, this may be a backend provisioning or quota state issue. I would open a Microsoft 365 or Entra support case and include the directorySizeQuota output, tenant ID, license status, and the exact app registration error.

  • Kidd_Ip's avatar
    Kidd_Ip
    MVP
    Mar 17, 2026

    Your tenant has reached the default directory object quota limit of 500, which accounts for the error encountered when attempting to register new applications. Under a Microsoft 365 Business Premium subscription, the expected quota is typically significantly higher, 300,000 objects. This discrepancy indicates a provisioning anomaly that requires escalation through Microsoft support channels for resolution.

     

    https://learn.microsoft.com/en-us/azure/active-directory-b2c/tenant-management-directory-quota

     

    https://learn.microsoft.com/en-us/entra/identity/users/directory-service-limits-restrictions