diff --git a/packages/backend/src/controllers/api/v1/apps/create-connection.js b/packages/backend/src/controllers/api/v1/apps/create-connection.js
new file mode 100644
index 00000000..40a081b9
--- /dev/null
+++ b/packages/backend/src/controllers/api/v1/apps/create-connection.js
@@ -0,0 +1,27 @@
+import { renderObject } from '../../../../helpers/renderer.js';
+
+export default async (request, response) => {
+  const connection = await request.currentUser
+    .$relatedQuery('connections')
+    .insertAndFetch(connectionParams(request));
+
+  const connectionWithAppConfigAndAuthClient = await connection
+    .$query()
+    .withGraphFetched({
+      appConfig: true,
+      appAuthClient: true,
+    });
+
+  renderObject(response, connectionWithAppConfigAndAuthClient, { status: 201 });
+};
+
+const connectionParams = (request) => {
+  const { appAuthClientId, formattedData } = request.body;
+
+  return {
+    key: request.params.appKey,
+    appAuthClientId,
+    formattedData,
+    verified: false,
+  };
+};
diff --git a/packages/backend/src/controllers/api/v1/apps/create-connection.test.js b/packages/backend/src/controllers/api/v1/apps/create-connection.test.js
new file mode 100644
index 00000000..c6e3634f
--- /dev/null
+++ b/packages/backend/src/controllers/api/v1/apps/create-connection.test.js
@@ -0,0 +1,405 @@
+import { describe, it, expect, beforeEach } from 'vitest';
+import request from 'supertest';
+import app from '../../../../app.js';
+import createAuthTokenByUserId from '../../../../helpers/create-auth-token-by-user-id.js';
+import { createAppConfig } from '../../../../../test/factories/app-config.js';
+import { createAppAuthClient } from '../../../../../test/factories/app-auth-client.js';
+import { createUser } from '../../../../../test/factories/user.js';
+import { createPermission } from '../../../../../test/factories/permission.js';
+import { createRole } from '../../../../../test/factories/role.js';
+import createConnection from '../../../../../test/mocks/rest/api/v1/apps/create-connection.js';
+
+describe('POST /api/v1/apps/:appKey/connections', () => {
+  let currentUser, token;
+
+  beforeEach(async () => {
+    const role = await createRole();
+
+    await createPermission({
+      action: 'read',
+      subject: 'Connection',
+      roleId: role.id,
+    });
+
+    await createPermission({
+      action: 'create',
+      subject: 'Connection',
+      roleId: role.id,
+    });
+
+    currentUser = await createUser({ roleId: role.id });
+
+    currentUser = await currentUser
+      .$query()
+      .leftJoinRelated({
+        role: true,
+        permissions: true,
+      })
+      .withGraphFetched({
+        role: true,
+        permissions: true,
+      });
+
+    token = await createAuthTokenByUserId(currentUser.id);
+  });
+
+  describe('with no app config', async () => {
+    it('should return created connection', async () => {
+      const connectionData = {
+        formattedData: {
+          oAuthRedirectUrl: 'http://localhost:3000/app/gitlab/connections/add',
+          instanceUrl: 'https://gitlab.com',
+          clientId: 'sample_client_id',
+          clientSecret: 'sample_client_secret',
+        },
+      };
+
+      const response = await request(app)
+        .post('/api/v1/apps/gitlab/connections')
+        .set('Authorization', token)
+        .send(connectionData)
+        .expect(201);
+
+      const fetchedConnection =
+        await currentUser.authorizedConnections.findById(response.body.data.id);
+
+      const expectedPayload = createConnection({
+        ...fetchedConnection,
+        formattedData: {},
+      });
+
+      expect(response.body).toStrictEqual(expectedPayload);
+    });
+
+    it('should return not found response for invalid app key', async () => {
+      await request(app)
+        .post('/api/v1/apps/invalid-app-key/connections')
+        .set('Authorization', token)
+        .expect(404);
+    });
+
+    it('should return unprocesible entity response for invalid connection data', async () => {
+      const response = await request(app)
+        .post('/api/v1/apps/gitlab/connections')
+        .set('Authorization', token)
+        .send({
+          formattedData: 123,
+        })
+        .expect(422);
+
+      expect(response.body).toStrictEqual({
+        errors: {
+          formattedData: ['must be object'],
+        },
+        meta: {
+          type: 'ModelValidation',
+        },
+      });
+    });
+  });
+
+  describe('with app disabled', async () => {
+    beforeEach(async () => {
+      await createAppConfig({
+        key: 'gitlab',
+        disabled: true,
+      });
+    });
+
+    it('should return with not authorized response', async () => {
+      const connectionData = {
+        formattedData: {
+          oAuthRedirectUrl: 'http://localhost:3000/app/gitlab/connections/add',
+          instanceUrl: 'https://gitlab.com',
+          clientId: 'sample_client_id',
+          clientSecret: 'sample_client_secret',
+        },
+      };
+
+      await request(app)
+        .post('/api/v1/apps/gitlab/connections')
+        .set('Authorization', token)
+        .send(connectionData)
+        .expect(403);
+    });
+
+    it('should return not found response for invalid app key', async () => {
+      await request(app)
+        .post('/api/v1/apps/invalid-app-key/connections')
+        .set('Authorization', token)
+        .expect(404);
+    });
+
+    it('should return unprocesible entity response for invalid connection data', async () => {
+      const response = await request(app)
+        .post('/api/v1/apps/gitlab/connections')
+        .set('Authorization', token)
+        .send({
+          formattedData: 123,
+        })
+        .expect(422);
+
+      expect(response.body).toStrictEqual({
+        errors: {
+          formattedData: ['must be object'],
+        },
+        meta: {
+          type: 'ModelValidation',
+        },
+      });
+    });
+  });
+
+  describe('with custom connections enabled', async () => {
+    beforeEach(async () => {
+      await createAppConfig({
+        key: 'gitlab',
+        disabled: false,
+        allowCustomConnection: true,
+      });
+    });
+
+    it('should return created conncetion', async () => {
+      const connectionData = {
+        formattedData: {
+          oAuthRedirectUrl: 'http://localhost:3000/app/gitlab/connections/add',
+          instanceUrl: 'https://gitlab.com',
+          clientId: 'sample_client_id',
+          clientSecret: 'sample_client_secret',
+        },
+      };
+
+      const response = await request(app)
+        .post('/api/v1/apps/gitlab/connections')
+        .set('Authorization', token)
+        .send(connectionData)
+        .expect(201);
+
+      const fetchedConnection =
+        await currentUser.authorizedConnections.findById(response.body.data.id);
+
+      const expectedPayload = createConnection({
+        ...fetchedConnection,
+        formattedData: {},
+      });
+
+      expect(response.body).toStrictEqual(expectedPayload);
+    });
+
+    it('should return not found response for invalid app key', async () => {
+      await request(app)
+        .post('/api/v1/apps/invalid-app-key/connections')
+        .set('Authorization', token)
+        .expect(404);
+    });
+
+    it('should return unprocesible entity response for invalid connection data', async () => {
+      const response = await request(app)
+        .post('/api/v1/apps/gitlab/connections')
+        .set('Authorization', token)
+        .send({
+          formattedData: 123,
+        })
+        .expect(422);
+
+      expect(response.body).toStrictEqual({
+        errors: {
+          formattedData: ['must be object'],
+        },
+        meta: {
+          type: 'ModelValidation',
+        },
+      });
+    });
+  });
+
+  describe('with custom connections disabled', async () => {
+    beforeEach(async () => {
+      await createAppConfig({
+        key: 'gitlab',
+        disabled: false,
+        allowCustomConnection: false,
+      });
+    });
+
+    it('should return with not authorized response', async () => {
+      const connectionData = {
+        formattedData: {
+          oAuthRedirectUrl: 'http://localhost:3000/app/gitlab/connections/add',
+          instanceUrl: 'https://gitlab.com',
+          clientId: 'sample_client_id',
+          clientSecret: 'sample_client_secret',
+        },
+      };
+
+      await request(app)
+        .post('/api/v1/apps/gitlab/connections')
+        .set('Authorization', token)
+        .send(connectionData)
+        .expect(403);
+    });
+
+    it('should return not found response for invalid app key', async () => {
+      await request(app)
+        .post('/api/v1/apps/invalid-app-key/connections')
+        .set('Authorization', token)
+        .expect(404);
+    });
+
+    it('should return unprocesible entity response for invalid connection data', async () => {
+      const response = await request(app)
+        .post('/api/v1/apps/gitlab/connections')
+        .set('Authorization', token)
+        .send({
+          formattedData: 123,
+        })
+        .expect(422);
+
+      expect(response.body).toStrictEqual({
+        errors: {
+          formattedData: ['must be object'],
+        },
+        meta: {
+          type: 'ModelValidation',
+        },
+      });
+    });
+  });
+
+  describe('with auth clients enabled', async () => {
+    let appAuthClient;
+
+    beforeEach(async () => {
+      await createAppConfig({
+        key: 'gitlab',
+        disabled: false,
+        shared: true,
+      });
+
+      appAuthClient = await createAppAuthClient({
+        appKey: 'gitlab',
+        active: true,
+        formattedAuthDefaults: {
+          oAuthRedirectUrl: 'http://localhost:3000/app/gitlab/connections/add',
+          instanceUrl: 'https://gitlab.com',
+          clientId: 'sample_client_id',
+          clientSecret: 'sample_client_secret',
+        },
+      });
+    });
+
+    it('should return created connection', async () => {
+      const connectionData = {
+        appAuthClientId: appAuthClient.id,
+      };
+
+      const response = await request(app)
+        .post('/api/v1/apps/gitlab/connections')
+        .set('Authorization', token)
+        .send(connectionData)
+        .expect(201);
+
+      const fetchedConnection =
+        await currentUser.authorizedConnections.findById(response.body.data.id);
+
+      const expectedPayload = createConnection({
+        ...fetchedConnection,
+        formattedData: {},
+      });
+
+      expect(response.body).toStrictEqual(expectedPayload);
+    });
+
+    it('should return not authorized response for appAuthClientId and formattedData together', async () => {
+      const connectionData = {
+        appAuthClientId: appAuthClient.id,
+        formattedData: {},
+      };
+
+      await request(app)
+        .post('/api/v1/apps/gitlab/connections')
+        .set('Authorization', token)
+        .send(connectionData)
+        .expect(403);
+    });
+
+    it('should return not found response for invalid app key', async () => {
+      await request(app)
+        .post('/api/v1/apps/invalid-app-key/connections')
+        .set('Authorization', token)
+        .expect(404);
+    });
+
+    it('should return unprocesible entity response for invalid connection data', async () => {
+      const response = await request(app)
+        .post('/api/v1/apps/gitlab/connections')
+        .set('Authorization', token)
+        .send({
+          formattedData: 123,
+        })
+        .expect(422);
+
+      expect(response.body).toStrictEqual({
+        errors: {
+          formattedData: ['must be object'],
+        },
+        meta: {
+          type: 'ModelValidation',
+        },
+      });
+    });
+  });
+  describe('with auth clients disabled', async () => {
+    let appAuthClient;
+
+    beforeEach(async () => {
+      await createAppConfig({
+        key: 'gitlab',
+        disabled: false,
+        shared: false,
+      });
+
+      appAuthClient = await createAppAuthClient({
+        appKey: 'gitlab',
+      });
+    });
+
+    it('should return with not authorized response', async () => {
+      const connectionData = {
+        appAuthClientId: appAuthClient.id,
+      };
+
+      await request(app)
+        .post('/api/v1/apps/gitlab/connections')
+        .set('Authorization', token)
+        .send(connectionData)
+        .expect(403);
+    });
+
+    it('should return not found response for invalid app key', async () => {
+      await request(app)
+        .post('/api/v1/apps/invalid-app-key/connections')
+        .set('Authorization', token)
+        .expect(404);
+    });
+
+    it('should return unprocesible entity response for invalid connection data', async () => {
+      const response = await request(app)
+        .post('/api/v1/apps/gitlab/connections')
+        .set('Authorization', token)
+        .send({
+          formattedData: 123,
+        })
+        .expect(422);
+
+      expect(response.body).toStrictEqual({
+        errors: {
+          formattedData: ['must be object'],
+        },
+        meta: {
+          type: 'ModelValidation',
+        },
+      });
+    });
+  });
+});
diff --git a/packages/backend/src/helpers/authorization.js b/packages/backend/src/helpers/authorization.js
index 36210615..1fff9d88 100644
--- a/packages/backend/src/helpers/authorization.js
+++ b/packages/backend/src/helpers/authorization.js
@@ -97,6 +97,10 @@ const authorizationList = {
     action: 'update',
     subject: 'Flow',
   },
+  'POST /api/v1/apps/:appKey/connections': {
+    action: 'create',
+    subject: 'Connection',
+  },
 };
 
 export const authorizeUser = async (request, response, next) => {
diff --git a/packages/backend/src/models/connection.js b/packages/backend/src/models/connection.js
index a9cfefb2..54819fad 100644
--- a/packages/backend/src/models/connection.js
+++ b/packages/backend/src/models/connection.js
@@ -9,6 +9,7 @@ import Step from './step.js';
 import appConfig from '../config/app.js';
 import Telemetry from '../helpers/telemetry/index.js';
 import globalVariable from '../helpers/global-variable.js';
+import NotAuthorizedError from '../errors/not-authorized.js';
 
 class Connection extends Base {
   static tableName = 'connections';
@@ -121,10 +122,51 @@ class Connection extends Base {
     return this.data ? true : false;
   }
 
+  async checkEligibilityForCreation() {
+    const app = await App.findOneByKey(this.key);
+
+    const appConfig = await AppConfig.query().findOne({ key: this.key });
+
+    if (appConfig) {
+      if (appConfig.disabled) {
+        throw new NotAuthorizedError(
+          'The application has been disabled for new connections!'
+        );
+      }
+
+      if (!appConfig.allowCustomConnection && this.formattedData) {
+        throw new NotAuthorizedError(
+          `New custom connections have been disabled for ${app.name}!`
+        );
+      }
+
+      if (!appConfig.shared && this.appAuthClientId) {
+        throw new NotAuthorizedError(
+          'The connection with the given app auth client is not allowed!'
+        );
+      }
+
+      if (appConfig.shared && !this.formattedData) {
+        const authClient = await appConfig
+          .$relatedQuery('appAuthClients')
+          .findById(this.appAuthClientId)
+          .where({ active: true })
+          .throwIfNotFound();
+
+        this.formattedData = authClient.formattedAuthDefaults;
+      }
+    }
+
+    return this;
+  }
+
   // TODO: Make another abstraction like beforeSave instead of using
   // beforeInsert and beforeUpdate separately for the same operation.
   async $beforeInsert(queryContext) {
     await super.$beforeInsert(queryContext);
+
+    await this.checkEligibilityForCreation();
+
     this.encryptData();
   }
 
diff --git a/packages/backend/src/routes/api/v1/apps.js b/packages/backend/src/routes/api/v1/apps.js
index 084099dc..5bdc27f1 100644
--- a/packages/backend/src/routes/api/v1/apps.js
+++ b/packages/backend/src/routes/api/v1/apps.js
@@ -14,6 +14,7 @@ import getTriggerSubstepsAction from '../../../controllers/api/v1/apps/get-trigg
 import getActionsAction from '../../../controllers/api/v1/apps/get-actions.js';
 import getActionSubstepsAction from '../../../controllers/api/v1/apps/get-action-substeps.js';
 import getFlowsAction from '../../../controllers/api/v1/apps/get-flows.js';
+import createConnectionAction from '../../../controllers/api/v1/apps/create-connection.js';
 
 const router = Router();
 
@@ -28,6 +29,13 @@ router.get(
   getConnectionsAction
 );
 
+router.post(
+  '/:appKey/connections',
+  authenticateUser,
+  authorizeUser,
+  createConnectionAction
+);
+
 router.get(
   '/:appKey/config',
   authenticateUser,
diff --git a/packages/backend/test/mocks/rest/api/v1/apps/create-connection.js b/packages/backend/test/mocks/rest/api/v1/apps/create-connection.js
new file mode 100644
index 00000000..9e993a4c
--- /dev/null
+++ b/packages/backend/test/mocks/rest/api/v1/apps/create-connection.js
@@ -0,0 +1,25 @@
+const createConnection = (connection) => {
+  const connectionData = {
+    id: connection.id,
+    key: connection.key,
+    reconnectable: connection.reconnectable || true,
+    appAuthClientId: connection.appAuthClientId,
+    formattedData: connection.formattedData,
+    verified: connection.verified || false,
+    createdAt: connection.createdAt.getTime(),
+    updatedAt: connection.updatedAt.getTime(),
+  };
+
+  return {
+    data: connectionData,
+    meta: {
+      count: 1,
+      currentPage: null,
+      isArray: false,
+      totalPages: null,
+      type: 'Connection',
+    },
+  };
+};
+
+export default createConnection;