function Create-SPOContentType($ctx, $Name, $Description, $group, $templateExt, $isParentId, $id){
    $baseTemplateUrl = "/sites/contenttypehub/FormServerTemplates/template"
    write-host "Creating $($Name) content type ... " -NoNewline

    $lci =New-Object Microsoft.SharePoint.Client.ContentTypeCreationInformation
    If($isParentId){
        $lci.ParentContentType = $ctx.Web.ContentTypes.GetById($id)
    } else {
        $lci.ID = $Id
    }

    $lci.Name = $Name
    $lci.Description = $Description
    $lci.Group = $group

    $contentType = $ctx.Web.ContentTypes.Add($lci)

    $contentType.DocumentTemplate = ($baseTemplateUrl + $templateExt)
    $contentType.Update($true)

    try{
        $ctx.executeQuery()
        write-host "$($Name) created." -ForegroundColor Green
    }
    catch{
        write-host
        write-host "Error while creating $($Name)" -foregroundcolor red
        write-host "Error Message $($_.Exception.Message) $($_.Exception.Message)" -foregroundcolor red
    }
}

Add-Type -Path "C:\Program Files\Common Files\Microsoft Shared\Web Server Extensions\15\ISAPI\Microsoft.SharePoint.Client.dll"
Add-Type -Path "C:\Program Files\Common Files\Microsoft Shared\Web Server Extensions\15\ISAPI\Microsoft.SharePoint.Client.Runtime.dll"

$siteUrl = Read-Host -Prompt "Provide the URL"
$adminUsername = Read-Host -Prompt ("Provide user for {0}" -f $siteUrl)
$secureAdminPassword = Read-Host -Prompt ("Provide password for {0}" -f $adminUsername) -AsSecureString

$credentials = New-Object Microsoft.SharePoint.Client.SharePointOnlineCredentials($adminUsername, $secureAdminPassword)
$ctx = New-Object Microsoft.SharePoint.Client.ClientContext($siteUrl)
$ctx.Credentials = $credentials

Create-SPOContentType $ctx "Word Document PSCT" "" "PowerSheel Content Types" ".docx" $false "0x0101000728167cd9c94899925ba69c4af6743e"
Create-SPOContentType $ctx "Excel Document PSCT" "" "PowerSheel Content Types" ".xlsx" $true "0x0101"