Cannot share folder and files to external parties via OneDrive

Issue:

cannot share folder and files to external parties via OneDrive. it give message "your organization's policies don't allow you to share with these users. please contact your IT department for help (OSE201).

 

Key Points:

 

One of the possibility is that External Sharing was turned off for your tenant. To resolve this follow the below steps:

 

Navigate to https://admin.onedrive.com (OneDrive Admin Center) -> Sharing -> It was on “Only People in your organization” to “New and existing external users” for SharePoint -> then it will enable external sharing for OneDrive as well, with the same option and save it. Which will allow us to share with new and external users

 

If you wish to restrict it with only certain number of users then please create a security group (https://docs.microsoft.com/en-us/office365/admin/email/create-edit-or-delete-a-security-group?view=o365-worldwide) -> add users there.

Then navigate to SharePoint Admin Center -> Sharing ->  check option “Let only users in selected security groups share with authenticated external users” -> add security group -> Save

 

Also check the below mentioned article for reference :

https://docs.microsoft.com/en-us/sharepoint/external-sharing-overview