Go to SharePoint Online Admin Center.
Click on settings on left navigation bar.
Go to Site Creation and SubSite Creation Section.

Site Creation
You can either Hide the Create site command or show it.
If you select Show the Create site command, other options will be enabled and you can select the type of site that users can create. It will display the Create Site command on SharePoint Home Page and in the sites list in OneDrive so users can create new sites.
When users select Create site command, user can either create a new team site/communication site or a classic team site.
If user selects to create a new team site/communication site, it let user create an Office 365 group-connected team site or a communication site under /sites or /teams. Users who don’t have permission to create Office 365 groups can still create new team site without Office 365 groups. You can also decide whether Secondary contact is required or not. To let users create site from a custom form you have created, check the Use the form at this URL checkbox and enter the UR in the textbox.

If user selects second option, it will create a default classic team subsite or sites from the custom form. Specify where sites are created, Site Classification (Hidden from users, an optional choice, a required choice) and secondary contact is required or not.

SubSite Creation
You can select whether users can create subsites only for classic sites, for all sites or not create subsites.







