To do this, talk to the Faction Supervisor located in East Archosaur (572, 656). If your faction is level 1, you are able to disband the faction if you are its leader.

Level 3: 200 member limit - costs 10,000,000 to upgrade.

Level 2: 100 member limit - costs 2,000,000 to upgrade.

Level 1: 50 member limit - already unlocked by default.

Note that once you have upgraded your faction to at least level 2, you will not be able to disband the faction. To upgrade your faction's level, you must speak to the Faction Supervisor, located in East Archosaur (572, 656) and have the correct amount of coins to upgrade the faction. Factions that are level 1 also have access to certain other features such as being able to have their own Faction Base. Each level indicates the amount of members that the faction can have. There are a total of 3 levels for a faction. Once the faction will be established, you will be assigned leadership of the faction. The name must not already be taken, and may not contain offensive language and certain numbers, spaces, foreign characters, or symbols. There they will be prompted to select a name for the faction. To establish a faction, the player must talk to the Faction Supervisor, located in East Archosaur (572, 656).

There is also a 100,000 fee to create a faction. In order to establish a faction and become its leader, the player must be level 20 or above, and not currently be a member of an existing faction.

How to create a faction in hoi4