How to Create Category in Magento
Step 1. On the Admin menu, select Catalog > Manage Categories.
Step 2. Before you begin, set Choose Store View to the store or view. By default, the scope of the category configuration is set to “All Store Views.”
Step 3. In the category tree, click the category that is to be the parent of the new category. The parent is the level just above the new category.
If you’re starting from the beginning without any data, there might be only two categories in the list: “Default Category,” which is the root, and an “Example Category.”
Step 4. Click the Add Subcategory button.