diff --git a/app/controllers/projects_controller.rb b/app/controllers/projects_controller.rb
index b3181fa310e..ead0127b515 100644
--- a/app/controllers/projects_controller.rb
+++ b/app/controllers/projects_controller.rb
@@ -19,10 +19,11 @@ class ProjectsController < ApplicationController
 
   def create
     @project = ::Projects::CreateService.new(current_user, project_params).execute
-    flash[:notice] = 'Project was successfully created.' if @project.saved?
 
-    respond_to do |format|
-      format.js
+    if @project.saved?
+      redirect_to project_path(@project), notice: 'Project was successfully created.'
+    else
+      render 'new'
     end
   end
 
diff --git a/app/models/project.rb b/app/models/project.rb
index d2576bb85d0..d7570684ac8 100644
--- a/app/models/project.rb
+++ b/app/models/project.rb
@@ -586,4 +586,25 @@ class Project < ActiveRecord::Base
   def origin_merge_requests
     merge_requests.where(source_project_id: self.id)
   end
+
+  def create_repository
+    if gitlab_shell.add_repository(path_with_namespace)
+      true
+    else
+      errors.add(:base, "Failed to create repository")
+      false
+    end
+  end
+
+  def repository_exists?
+    !!repository.exists?
+  end
+
+  def create_wiki
+    ProjectWiki.new(self, self.owner).wiki
+    true
+  rescue ProjectWiki::CouldNotCreateWikiError => ex
+    errors.add(:base, "Failed create wiki")
+    false
+  end
 end
diff --git a/app/services/projects/create_service.rb b/app/services/projects/create_service.rb
index 12386792aab..3672b623806 100644
--- a/app/services/projects/create_service.rb
+++ b/app/services/projects/create_service.rb
@@ -37,37 +37,24 @@ module Projects
 
       @project.creator = current_user
 
-      if @project.save
-        log_info("#{@project.owner.name} created a new project \"#{@project.name_with_namespace}\"")
-        system_hook_service.execute_hooks_for(@project, :create)
+      Project.transaction do
+        @project.save
 
-        unless @project.group
-          @project.team << [current_user, :master]
-        end
-
-        @project.update_column(:last_activity_at, @project.created_at)
-
-        if @project.import?
-          @project.import_start
-        else
-          GitlabShellWorker.perform_async(
-            :add_repository,
-            @project.path_with_namespace
-          )
-        end
-
-        if @project.wiki_enabled?
-          begin
-            # force the creation of a wiki,
-            ProjectWiki.new(@project, @project.owner).wiki
-          rescue ProjectWiki::CouldNotCreateWikiError => ex
-            # Prevent project observer crash
-            # if failed to create wiki
-            nil
+        unless @project.import?
+          unless @project.create_repository
+            raise 'Failed to create repository'
           end
         end
       end
 
+      if @project.persisted?
+        if @project.wiki_enabled?
+          @project.create_wiki
+        end
+
+        after_create_actions
+      end
+
       @project
     rescue => ex
       @project.errors.add(:base, "Can't save project. Please try again later")
@@ -84,5 +71,20 @@ module Projects
       namespace = Namespace.find_by(id: namespace_id)
       current_user.can?(:create_projects, namespace)
     end
+
+    def after_create_actions
+      log_info("#{@project.owner.name} created a new project \"#{@project.name_with_namespace}\"")
+      system_hook_service.execute_hooks_for(@project, :create)
+
+      unless @project.group
+        @project.team << [current_user, :master]
+      end
+
+      @project.update_column(:last_activity_at, @project.created_at)
+
+      if @project.import?
+        @project.import_start
+      end
+    end
   end
 end
diff --git a/app/views/projects/create.js.haml b/app/views/projects/create.js.haml
deleted file mode 100644
index 89710d3a09a..00000000000
--- a/app/views/projects/create.js.haml
+++ /dev/null
@@ -1,13 +0,0 @@
-- if @project.saved?
-  - if @project.import?
-    :plain
-      location.href = "#{import_project_path(@project)}";
-  - else
-    :plain
-      location.href = "#{project_path(@project)}";
-- else
-  :plain
-    $(".project-edit-errors").html("#{escape_javascript(render('errors'))}");
-    $('.project-submit').enable();
-    $('.save-project-loader').hide();
-    $('.project-edit-container').show();
diff --git a/app/views/projects/new.html.haml b/app/views/projects/new.html.haml
index f5cd0f21e01..e77ef84f51c 100644
--- a/app/views/projects/new.html.haml
+++ b/app/views/projects/new.html.haml
@@ -3,7 +3,7 @@
     = render 'projects/errors'
   .project-edit-content
 
-    = form_for @project, remote: true, html: { class: 'new_project form-horizontal' } do |f|
+    = form_for @project, html: { class: 'new_project form-horizontal' } do |f|
       .form-group.project-name-holder
         = f.label :name, class: 'control-label' do
           %strong Project name