1. Login to the https://portal.office.com/ using your admin account
2. Click the Users and Select Add a User. Now you can introduce the user information. Here you can choose auto-generate the password or assign one. Click the Save button.
3. After O365 save the user information , now you are presented with another screen where you can introduce the email to whom send the password information.
4. If you decided to Send Email with the user information and temporary password, the person receiving the O365 email will receive an email like the screen below.
At this point the user should be able to login with their credentials and start using the O365 products based in the licence type assigned.