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M365: One tenant with multiple domains



We have one prospect for M365 Business Standard. They have a query on license compliance for the Group company.

Scenario -

Company 1 has four Entities (A, B, C, & D).

Company 2 has two Entities (E & F). All are owned by same set of individual shareholders.


They plan to have two domains; one for Company 1, Entities D & E and other for Entities A & B. They want to confirm if this setup in MS365 (i.e. one tenant with multiple domains (by multiple legal entities as described above) are in no way in violation of any Microsoft licensing policy. Kindly confirm.