diff --git a/cmd/capibmadm/cmd/doc.go b/cmd/capibmadm/cmd/doc.go
new file mode 100644
index 000000000..b76634bae
--- /dev/null
+++ b/cmd/capibmadm/cmd/doc.go
@@ -0,0 +1,18 @@
+/*
+Copyright 2023 The Kubernetes Authors.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+// Package cmd contains the capibm cli commands.
+package cmd
diff --git a/cmd/capibmadm/cmd/powervs/doc.go b/cmd/capibmadm/cmd/powervs/doc.go
new file mode 100644
index 000000000..0f64892b8
--- /dev/null
+++ b/cmd/capibmadm/cmd/powervs/doc.go
@@ -0,0 +1,18 @@
+/*
+Copyright 2023 The Kubernetes Authors.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+// Package powervs contains the commands to operate on Power VS resources.
+package powervs
diff --git a/cmd/capibmadm/cmd/powervs/network/create.go b/cmd/capibmadm/cmd/powervs/network/create.go
new file mode 100644
index 000000000..78038ecc5
--- /dev/null
+++ b/cmd/capibmadm/cmd/powervs/network/create.go
@@ -0,0 +1,66 @@
+/*
+Copyright 2023 The Kubernetes Authors.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+package network
+
+import (
+	"fmt"
+
+	"github.com/spf13/cobra"
+
+	logf "sigs.k8s.io/cluster-api/cmd/clusterctl/log"
+
+	"sigs.k8s.io/cluster-api-provider-ibmcloud/cmd/capibmadm/options"
+)
+
+type networkCreateOptions struct {
+	name       string
+	dnsServers []string
+}
+
+// NewNetworkCreateCommand function to create PowerVS network.
+func NewNetworkCreateCommand() *cobra.Command {
+	cmd := &cobra.Command{
+		Use:   "create NETWORK_NAME",
+		Short: "Create PowerVS network",
+		Example: `
+# Create PowerVS network with name capi-network
+export IBMCLOUD_API_KEY=<api-key>
+capibmadm powervs network create capi-network --service-instance-id <service-instance-id>`,
+	}
+
+	var netCreateOption networkCreateOptions
+	cmd.Flags().StringSliceVar(&netCreateOption.dnsServers, "dns-servers", []string{"8.8.8.8", "9.9.9.9"}, "Comma separated list of DNS Servers to use for this network")
+
+	cmd.RunE = func(cmd *cobra.Command, args []string) error {
+		if len(args) < 1 {
+			return fmt.Errorf("network name is not provided")
+		}
+		netCreateOption.name = args[0]
+		if err := createNetwork(netCreateOption); err != nil {
+			return err
+		}
+		return nil
+	}
+	return cmd
+}
+
+func createNetwork(netCreateOption networkCreateOptions) error {
+	log := logf.Log
+	log.Info("Creating Power VS network", "name", netCreateOption.name, "service-instance-id", options.GlobalOptions.ServiceInstanceID, "dns-servers", netCreateOption.dnsServers)
+	//TODO: add network creation logic here
+	return nil
+}
diff --git a/cmd/capibmadm/cmd/powervs/network/doc.go b/cmd/capibmadm/cmd/powervs/network/doc.go
new file mode 100644
index 000000000..deb35f068
--- /dev/null
+++ b/cmd/capibmadm/cmd/powervs/network/doc.go
@@ -0,0 +1,18 @@
+/*
+Copyright 2023 The Kubernetes Authors.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+// Package network contains the commands to operate on Power VS Network resources.
+package network
diff --git a/cmd/capibmadm/cmd/powervs/network/network.go b/cmd/capibmadm/cmd/powervs/network/network.go
new file mode 100644
index 000000000..f829e9c0d
--- /dev/null
+++ b/cmd/capibmadm/cmd/powervs/network/network.go
@@ -0,0 +1,51 @@
+/*
+Copyright 2023 The Kubernetes Authors.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+package network
+
+import (
+	"fmt"
+
+	"github.com/spf13/cobra"
+
+	"sigs.k8s.io/cluster-api-provider-ibmcloud/cmd/capibmadm/options"
+)
+
+// NewNetworkCommand function to add PowerVS network commands.
+func NewNetworkCommand() *cobra.Command {
+	cmd := &cobra.Command{
+		Use:   "network",
+		Short: "Perform PowerVS network operations",
+		PersistentPreRunE: func(cmd *cobra.Command, args []string) error {
+			// we cannot have multiple PersistentPreRunE for a command
+			// This block is a workaround mentioned in https://github.com/spf13/cobra/issues/252
+			root := cmd
+			for ; root.HasParent(); root = root.Parent() {
+			}
+			if err := root.PersistentPreRunE(cmd, args); err != nil {
+				return err
+			}
+			if options.GlobalOptions.ServiceInstanceID == "" {
+				return fmt.Errorf("service-instance-id is not provided")
+			}
+			return nil
+		},
+	}
+	options.AddCommonFlags(cmd)
+	cmd.AddCommand(NewNetworkCreateCommand())
+
+	return cmd
+}
diff --git a/cmd/capibmadm/cmd/powervs/powervs.go b/cmd/capibmadm/cmd/powervs/powervs.go
new file mode 100644
index 000000000..969973c21
--- /dev/null
+++ b/cmd/capibmadm/cmd/powervs/powervs.go
@@ -0,0 +1,34 @@
+/*
+Copyright 2023 The Kubernetes Authors.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+package powervs
+
+import (
+	"github.com/spf13/cobra"
+
+	networkcmd "sigs.k8s.io/cluster-api-provider-ibmcloud/cmd/capibmadm/cmd/powervs/network"
+)
+
+// NewPowerVSCommand initialises and returns powervs command.
+func NewPowerVSCommand() *cobra.Command {
+	cmd := &cobra.Command{
+		Use:   "powervs",
+		Short: "Commands for operations on PowerVS resources",
+	}
+	cmd.AddCommand(networkcmd.NewNetworkCommand())
+
+	return cmd
+}
diff --git a/cmd/capibmadm/cmd/root.go b/cmd/capibmadm/cmd/root.go
new file mode 100644
index 000000000..65723d4ef
--- /dev/null
+++ b/cmd/capibmadm/cmd/root.go
@@ -0,0 +1,63 @@
+/*
+Copyright 2023 The Kubernetes Authors.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+package cmd
+
+import (
+	"flag"
+	"fmt"
+	"os"
+
+	"github.com/spf13/cobra"
+
+	logf "sigs.k8s.io/cluster-api/cmd/clusterctl/log"
+
+	powervscmd "sigs.k8s.io/cluster-api-provider-ibmcloud/cmd/capibmadm/cmd/powervs"
+	"sigs.k8s.io/cluster-api-provider-ibmcloud/cmd/capibmadm/options"
+)
+
+func init() {
+	verbosity := flag.CommandLine.Int("v", 0, "Set the log level verbosity.")
+	logf.SetLogger(logf.NewLogger(logf.WithThreshold(verbosity)))
+}
+
+func rootCommand() *cobra.Command {
+	cmd := &cobra.Command{
+		Use:   "capibmadm",
+		Short: "Kubernetes Cluster API Provider IBM Cloud Management Utility",
+		Long:  `capibmadm provides helpers for completing the prerequisite operations for creating IBM Cloud Power VS or VPC clusters.`,
+		PersistentPreRunE: func(cmd *cobra.Command, args []string) error {
+			apiKey := os.Getenv(options.IBMCloudAPIKeyEnvName)
+			if apiKey == "" {
+				return fmt.Errorf("ibmcloud api key is not provided, set %s environmental variable", options.IBMCloudAPIKeyEnvName)
+			}
+			options.GlobalOptions.IBMCloudAPIKey = apiKey
+			return nil
+		},
+	}
+	cmd.PersistentFlags().AddGoFlagSet(flag.CommandLine)
+	cmd.AddCommand(powervscmd.NewPowerVSCommand())
+
+	return cmd
+}
+
+// Execute executes the root command.
+func Execute() {
+	if err := rootCommand().Execute(); err != nil {
+		fmt.Fprintln(os.Stderr, err)
+		os.Exit(1)
+	}
+}
diff --git a/cmd/capibmadm/main.go b/cmd/capibmadm/main.go
new file mode 100644
index 000000000..ee06b28ca
--- /dev/null
+++ b/cmd/capibmadm/main.go
@@ -0,0 +1,26 @@
+/*
+Copyright 2023 The Kubernetes Authors.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+// main is the main package for the capibm cli tool.
+package main
+
+import (
+	"sigs.k8s.io/cluster-api-provider-ibmcloud/cmd/capibmadm/cmd"
+)
+
+func main() {
+	cmd.Execute()
+}
diff --git a/cmd/capibmadm/options/doc.go b/cmd/capibmadm/options/doc.go
new file mode 100644
index 000000000..410f683a0
--- /dev/null
+++ b/cmd/capibmadm/options/doc.go
@@ -0,0 +1,18 @@
+/*
+Copyright 2023 The Kubernetes Authors.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+// Package options implements options code.
+package options
diff --git a/cmd/capibmadm/options/options.go b/cmd/capibmadm/options/options.go
new file mode 100644
index 000000000..2b4a5557e
--- /dev/null
+++ b/cmd/capibmadm/options/options.go
@@ -0,0 +1,36 @@
+/*
+Copyright 2023 The Kubernetes Authors.
+
+Licensed under the Apache License, Version 2.0 (the "License");
+you may not use this file except in compliance with the License.
+You may obtain a copy of the License at
+
+    http://www.apache.org/licenses/LICENSE-2.0
+
+Unless required by applicable law or agreed to in writing, software
+distributed under the License is distributed on an "AS IS" BASIS,
+WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied.
+See the License for the specific language governing permissions and
+limitations under the License.
+*/
+
+// Package options contains the reusable and global variables.
+package options
+
+import "github.com/spf13/cobra"
+
+// IBMCloudAPIKeyEnvName holds the environmental variable name to set PowerVS service instance ID.
+const IBMCloudAPIKeyEnvName = "IBMCLOUD_API_KEY" //nolint:gosec
+
+// GlobalOptions holds the global variable struct.
+var GlobalOptions = &options{}
+
+type options struct {
+	IBMCloudAPIKey    string
+	ServiceInstanceID string
+}
+
+// AddCommonFlags will add a common flag to the cli.
+func AddCommonFlags(cmd *cobra.Command) {
+	cmd.PersistentFlags().StringVar(&GlobalOptions.ServiceInstanceID, "service-instance-id", "", "PowerVS service instance id")
+}
diff --git a/docs/book/src/SUMMARY.md b/docs/book/src/SUMMARY.md
index 97313e356..2830c3b92 100644
--- a/docs/book/src/SUMMARY.md
+++ b/docs/book/src/SUMMARY.md
@@ -17,6 +17,9 @@
     - [Creating a cluster with External Cloud Provider](./topics/powervs/external-cloud-provider.md)
     - [Creating a cluster from ClusterClass](./topics/powervs/clusterclass-cluster.md)
     - [Using autoscaler with scaling from 0 machine](./topics/powervs/autoscaler-scalling-from-0.md)
+- [capibmadm CLI](./topics/capibmadm/index.md)
+  - [Power VS Commands](./topics/capibmadm/powervs/index.md)
+    - [Network Commands](./topics/capibmadm/powervs/network.md)
 - [Developer Guide](./developer/index.md)
   - [Rapid iterative development with Tilt](./developer/tilt.md)
   - [Guide for API conversions](./developer/conversion.md)
diff --git a/docs/book/src/topics/capibmadm/index.md b/docs/book/src/topics/capibmadm/index.md
new file mode 100644
index 000000000..e4fd3dde6
--- /dev/null
+++ b/docs/book/src/topics/capibmadm/index.md
@@ -0,0 +1,5 @@
+# capibmadm CLI
+
+Kubernetes Cluster API Provider IBM Cloud Management Utility
+
+## [1. Power VS commands](./powervs/index.md)
diff --git a/docs/book/src/topics/capibmadm/powervs/index.md b/docs/book/src/topics/capibmadm/powervs/index.md
new file mode 100644
index 000000000..cd352486d
--- /dev/null
+++ b/docs/book/src/topics/capibmadm/powervs/index.md
@@ -0,0 +1,6 @@
+# capibmadm powervs `<commands>`
+
+
+## 1. Power VS commands
+- [network](./network.md)
+    - [create](/topics/capibmadm/powervs/network.html#1-capibmadm-powervs-network-create)
diff --git a/docs/book/src/topics/capibmadm/powervs/network.md b/docs/book/src/topics/capibmadm/powervs/network.md
new file mode 100644
index 000000000..434772edb
--- /dev/null
+++ b/docs/book/src/topics/capibmadm/powervs/network.md
@@ -0,0 +1,21 @@
+## Power VS Network Commands
+
+### 1. capibmadm powervs network create
+
+#### Usage: 
+Create Power VS network.
+
+#### Environmental Variable:
+IBMCLOUD_API_KEY: IBM Cloud api key.
+
+#### Arguments:
+--service-instance-id: Power VS service instance id.
+--dns-servers: Comma separated list of DNS Servers to use for this network, Defaults to 8.8.8.8, 9.9.9.9.
+
+
+
+#### Example:
+```shell
+export IBMCLOUD_API_KEY=<api-key>
+capibmadm powervs network create capi-network --service-instance-id <service-instance-id>
+```
\ No newline at end of file
diff --git a/go.mod b/go.mod
index 8968efcad..120853e41 100644
--- a/go.mod
+++ b/go.mod
@@ -15,6 +15,7 @@ require (
 	github.com/onsi/ginkgo/v2 v2.6.0
 	github.com/onsi/gomega v1.24.1
 	github.com/pkg/errors v0.9.1
+	github.com/spf13/cobra v1.6.1
 	github.com/spf13/pflag v1.0.5
 	github.com/stretchr/testify v1.8.1
 	golang.org/x/text v0.6.0
@@ -114,7 +115,6 @@ require (
 	github.com/sirupsen/logrus v1.8.1 // indirect
 	github.com/spf13/afero v1.9.2 // indirect
 	github.com/spf13/cast v1.5.0 // indirect
-	github.com/spf13/cobra v1.6.1 // indirect
 	github.com/spf13/jwalterweatherman v1.1.0 // indirect
 	github.com/spf13/viper v1.13.0 // indirect
 	github.com/stoewer/go-strcase v1.2.0 // indirect