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Prerequisite:

  • an Office 365 Subscription

1. Make sure your organization's external collaboration settings are configured
such that you're allowed to invite external users. For more information, see
Configure external collaboration settings.

1.1 Sign in to the Microsoft Entra admin center
1.2    Browse to Identity > External Identities > External collaboration settings 👇.

2.3  Choosing the right setting (these may be different in your case) 👇.

3. Select Microsoft Entra ID > Users >All users  > New user > Invite external user 👇.

4. Select the settings as shown in the following screen👇. The usage location can of course be different.

5. Check mails and accept the invitation 👇.

6. Setting up MFA is now necessary, but that is another story and will not be covered here👇.

Refernces:

Assign Azure roles to external users using the Azure portal - Azure RBAC
Learn how to grant access to Azure resources for users external to an organization using the Azure portal and Azure role-based access control (Azure RBAC).
Enable B2B external collaboration settings - Microsoft Entra External ID
Learn how to enable Active Directory B2B external collaboration and manage who can invite guest users. Use the Guest Inviter role to delegate invitations.