In preparation for setting up Azure File Sync, two specific actions need to be performed within the Azure subscription: (1) Deploy a Storage Sync Service, which acts as the central resource for managing sync groups and registered servers, and (2) Create a sync group, which defines the synchronization topology and must contain at least one cloud endpoint representing an Azure file share. Actions like installing the Azure File Sync agent and registering the server are performed on the on-premises server rather than in the Azure subscription.