SharePoint Documentation: How to Make and Add New Document Folders


SharePoint is a powerful collaboration and document management platform that enables teams to securely store, organize, share, and access files. A key capability of SharePoint is its document libraries which serve as centralized repositories for storing files of any type.

To keep documents properly organized within these libraries, it is important to make use of folders. Folders provide an effective way to group related content and make it easier to manage. This article will cover everything you need to know about creating and working with SharePoint document folders.

Creating New Folders

Creating a new folder in SharePoint is a straightforward process. Here are the basic steps:

  1. Navigate to the SharePoint document library where you want to create the folder
  2. Click on the + New button in the top toolbar
  3. Select Folder from the dropdown menu
  4. In the dialog box that appears, enter a name for your folder
  5. Click Save

The new folder will now appear in the document library.

Setting Folder Permissions

Once a folder has been created, you can manage its permissions to control access. By default, folders inherit permissions from the parent document library.

To customize folder permissions:

  1. Hover over the folder and click the ellipses () to access the menu
  2. Select Manage Permissions
  3. Add or remove users/groups and choose whether they have read, edit, or full control access
  4. Click OK to apply changes

Setting unique permissions on folders enables more granular control over who can view or edit content.

Best Practices for Folder Structures

When planning your SharePoint folder structures, follow these best practices:

Keep it Simple

  • Avoid nested folders more than 2-3 levels deep
  • Use clear, descriptive folder names
  • Organize content based on logical groupings

Leverage Metadata

  • Use metadata like tags to categorize content
  • Create content types with custom columns
  • Enhance search and filtering capabilities

Set Up Views

  • Create custom views to display relevant folders/content
  • Allow end users to save personal views

Here is an example folder structure for a SharePoint team site:

Documents Library
├── Projects 
|   ├── Project Alpha
|   |   ├── Requirements
|   |   ├── Designs
|   ├── Project Beta
|       ├── Requirements
|       ├── Designs     
├── Sales
|   ├── Territories
|   |   ├── East Region   
|   |   ├── West Region
|   ├── Accounts
├── Marketing
├── Policies

This structure organizes documents into high-level categories using single-level folders for the most part. Further subfolders are used to separate content within the Project folders.

Metadata columns like Categories, Project Name, and Document Type can be added and used to enhance search and retrieval.

Working with Folders

Here are some key things you can do with SharePoint folders:

Upload Files

Drag-and-drop files directly into the folder to upload content. The Upload button can also be used to select files.

Create New Documents

Use the + New button within a folder to instantly create Word, Excel, PowerPoint and other Office documents.

Copy/Move Folders

Select a folder’s ellipses menu and choose Copy To or Move To to relocate folders to other locations.


Set up alerts on folders to get notified when changes occur like new files being added.

Sync Folders

Sync SharePoint folders to your local file system using OneDrive desktop app for offline access.

Tips for Managing Folders

Here are some additional tips for managing SharePoint folders:

  • Delete unused folders to reduce clutter
  • Review and prune folders regularly
  • Avoid deep nested folder structures
  • Categorize based on user needs, projects, data types etc.
  • Use descriptive folder names
  • Leverage metadata for enhanced organization


With its extensive document libraries capabilities and robust options for creating folder structures, SharePoint offers tremendous flexibility to organize business files as needed.

Planning your SharePoint folders effectively, applying folder management best practices, and leveraging metadata can help unlock the platform’s full potential for managing documents at scale across teams. This allows companies to boost productivity, collaboration and ensure proper records management and compliance.