diff --git a/resources/setup/install b/resources/setup/install
index c76ce509..7fdbd82b 100755
--- a/resources/setup/install
+++ b/resources/setup/install
@@ -36,6 +36,9 @@ chmod -R u+rwX log tmp
 sudo -u git -H mkdir -p public/uploads
 chmod -R u+rwX  public/uploads
 
+# create backups directory
+sudo -u git -H mkdir -p tmp/backups
+
 # create satellites directory
 sudo -u git -H mkdir -p /home/git/gitlab-satellites