diff --git a/apps/web/app/setup/organization/create/actions.ts b/apps/web/app/setup/organization/create/actions.ts
new file mode 100644
index 0000000000..11261b081a
--- /dev/null
+++ b/apps/web/app/setup/organization/create/actions.ts
@@ -0,0 +1,35 @@
+"use server";
+
+import { authenticatedActionClient } from "@/lib/utils/action-client";
+import { getIsMultiOrgEnabled } from "@/modules/ee/license-check/lib/utils";
+import { z } from "zod";
+import { gethasNoOrganizations } from "@formbricks/lib/instance/service";
+import { createMembership } from "@formbricks/lib/membership/service";
+import { createOrganization } from "@formbricks/lib/organization/service";
+import { OperationNotAllowedError } from "@formbricks/types/errors";
+
+const ZCreateOrganizationAction = z.object({
+  organizationName: z.string(),
+});
+
+export const createOrganizationAction = authenticatedActionClient
+  .schema(ZCreateOrganizationAction)
+  .action(async ({ ctx, parsedInput }) => {
+    const hasNoOrganizations = await gethasNoOrganizations();
+    const isMultiOrgEnabled = await getIsMultiOrgEnabled();
+
+    if (!hasNoOrganizations && !isMultiOrgEnabled) {
+      throw new OperationNotAllowedError("This action can only be performed on a fresh instance.");
+    }
+
+    const newOrganization = await createOrganization({
+      name: parsedInput.organizationName,
+    });
+
+    await createMembership(newOrganization.id, ctx.user.id, {
+      role: "owner",
+      accepted: true,
+    });
+
+    return newOrganization;
+  });
diff --git a/apps/web/app/setup/organization/create/components/create-organization.tsx b/apps/web/app/setup/organization/create/components/create-organization.tsx
index 4975c46540..5cccacb52b 100644
--- a/apps/web/app/setup/organization/create/components/create-organization.tsx
+++ b/apps/web/app/setup/organization/create/components/create-organization.tsx
@@ -1,6 +1,6 @@
 "use client";
 
-import { createOrganizationAction } from "@/modules/organization/actions";
+import { createOrganizationAction } from "@/app/setup/organization/create/actions";
 import { Button } from "@/modules/ui/components/button";
 import { FormControl, FormError, FormField, FormItem, FormProvider } from "@/modules/ui/components/form";
 import { Input } from "@/modules/ui/components/input";