1

I wants to share the documents library with my external clients on Sharepoint online and wants to provide them the authorization to Edit,View, update but restricting the download rights without providing them the SharePoint online licenses.

Sharing the documents with external users requiring the Sign in, is a must.

I read about it and found it is some how related to FBA...

kindly suggest...

2

This is provided out of the box. You must set external sharing on on your site in the SharePoint admin center or via PowerShell to "Allow external users who accept sharing invitations and sign in as authenticated users". enter image description here

PowerShell equivalent:

Set-SPOSite -Identity $SiteUrl -SharingCapability ExternalUserSharingOnly

Once enabled, you can share your site with users outside your organization, without using one of your E3 (or whatever licenses you carry).

They will receive an email invitation about the sharing and will then have to sign in with a Microsoft account (live.com, outlook.com, etc) or an existing Office 365 subscription (personal or work). Once they do this, they are in your site and have the rights and permissions granted to them.

  • With regards to the email invitation, I seem to recall that its important to ensure the user clicks the link in the email in order to 'accept' the invitation and thus activate their access. Just trying to browse to the site and attempting to login without doing that will fail. – Paul Lucas Mar 21 '16 at 11:29

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