diff --git a/app/views/groups/settings/_permissions.html.haml b/app/views/groups/settings/_permissions.html.haml
index 0da1f1ba7f5..d3375e00bad 100644
--- a/app/views/groups/settings/_permissions.html.haml
+++ b/app/views/groups/settings/_permissions.html.haml
@@ -20,6 +20,7 @@
     = render_if_exists 'groups/settings/ip_restriction', f: f, group: @group
     = render 'groups/settings/lfs', f: f
     = render 'groups/settings/project_creation_level', f: f, group: @group
+    = render 'groups/settings/subgroup_creation_level', f: f, group: @group
     = render 'groups/settings/two_factor_auth', f: f
     = render_if_exists 'groups/member_lock_setting', f: f, group: @group
 
diff --git a/app/views/groups/settings/_subgroup_creation_level.html.haml b/app/views/groups/settings/_subgroup_creation_level.html.haml
new file mode 100644
index 00000000000..f36ad192bad
--- /dev/null
+++ b/app/views/groups/settings/_subgroup_creation_level.html.haml
@@ -0,0 +1,3 @@
+.form-group
+  = f.label s_('SubgroupCreationLevel|Allowed to create subgroups'), class: 'label-bold'
+  = f.select :subgroup_creation_level, options_for_select(::Gitlab::Access.subgroup_creation_options, group.subgroup_creation_level), {}, class: 'form-control'
diff --git a/lib/gitlab/access.rb b/lib/gitlab/access.rb
index 77076ead47a..7ef9f7ef630 100644
--- a/lib/gitlab/access.rb
+++ b/lib/gitlab/access.rb
@@ -110,6 +110,13 @@ module Gitlab
       def project_creation_level_name(name)
         project_creation_options.key(name)
       end
+
+      def subgroup_creation_options
+        {
+          s_('SubgroupCreationlevel|Owners') => OWNER_SUBGROUP_ACCESS,
+          s_('SubgroupCreationlevel|Maintainers') => MAINTAINER_SUBGROUP_ACCESS
+        }
+      end
     end
 
     def human_access