diff --git a/alpha/apps/kaltura/lib/kObjectDeleteHandler.php b/alpha/apps/kaltura/lib/kObjectDeleteHandler.php
index 6c9d093db60..fe15e96ebfe 100644
--- a/alpha/apps/kaltura/lib/kObjectDeleteHandler.php
+++ b/alpha/apps/kaltura/lib/kObjectDeleteHandler.php
@@ -167,7 +167,7 @@ protected function kuserDelete(kuser $kuser)
 			// remove user from groups
 			KuserKgroupPeer::deleteByKuserId($kuser->getId());
 		}
-		elseif 	($kuser->getType() == KuserType::GROUP){
+		elseif 	($kuser->getType() == KuserType::GROUP || $kuser->getType() == KuserType::APPLICATIVE_GROUP){
 			// remove users from group
 			$filter = new KuserKgroupFilter();
 			$filter->setGroupIdEqual($kuser->getPuserId());
diff --git a/alpha/lib/enums/GroupType.php b/alpha/lib/enums/GroupType.php
new file mode 100644
index 00000000000..b336ca477eb
--- /dev/null
+++ b/alpha/lib/enums/GroupType.php
@@ -0,0 +1,11 @@
+<?php
+/**
+ * @package Core
+ * @subpackage model.enum
+ */
+
+interface GroupType extends BaseEnum
+{
+	const GROUP = 1;
+	const APPLICATIVE_GROUP = 2;
+}
diff --git a/alpha/lib/enums/KuserType.php b/alpha/lib/enums/KuserType.php
index 5423d847064..cd2da22dc4a 100644
--- a/alpha/lib/enums/KuserType.php
+++ b/alpha/lib/enums/KuserType.php
@@ -3,8 +3,7 @@
  * @package Core
  * @subpackage model.enum
  */ 
-interface KuserType extends BaseEnum
+interface KuserType extends GroupType
 {
 	const USER = 0;
-	const GROUP = 1;
-}
\ No newline at end of file
+}
diff --git a/alpha/lib/model/KuserKgroup.php b/alpha/lib/model/KuserKgroup.php
index 4deccf5cb12..3f8634586cb 100644
--- a/alpha/lib/model/KuserKgroup.php
+++ b/alpha/lib/model/KuserKgroup.php
@@ -17,6 +17,7 @@ class KuserKgroup extends BaseKuserKgroup implements IRelatedObject
 {
 	const GROUP_USER_CREATION_MODE = 'creation_mode';
 	const GROUP_USER_ROLE = 'user_role';
+	const GROUP_TYPE = 'group_type';
 
 	public function setPuserId($puserId)
 	{
@@ -43,7 +44,7 @@ public function setPgroupId($pgroupId)
 
 		$partnerId = kCurrentContext::getCurrentPartnerId();
 
-		$kgroup = kuserPeer::getKuserByPartnerAndUid($partnerId, $pgroupId, false, KuserType::GROUP);
+		$kgroup = kuserPeer::getKuserByPartnerAndUid($partnerId, $pgroupId, false);
 		if (!$kgroup)
 			throw new kCoreException("Invalid group Id [{$pgroupId}]", kCoreException::INVALID_USER_ID );
 
@@ -94,4 +95,14 @@ public function getUserRole()
 	{
 		return $this->getFromCustomData(self::GROUP_USER_ROLE, null, GroupUserRole::MEMBER);
 	}
+
+	public function setGroupType($v)
+	{
+		$this->putInCustomData(self::GROUP_TYPE, $v);
+	}
+
+	public function getGroupType()
+	{
+		return $this->getFromCustomData(self::GROUP_TYPE, null, GroupType::GROUP);
+	}
 }
diff --git a/api_v3/lib/types/KalturaGroupUser.php b/api_v3/lib/types/KalturaGroupUser.php
index 70b2af19bba..267758fdac6 100644
--- a/api_v3/lib/types/KalturaGroupUser.php
+++ b/api_v3/lib/types/KalturaGroupUser.php
@@ -68,6 +68,11 @@ class KalturaGroupUser extends KalturaObject implements IRelatedFilterable
 	 */
 	public $userRole;
 
+	/**
+	 * @var KalturaGroupType
+	 */
+	public $groupType;
+
 	private static $map_between_objects = array
 	(
 		"id",
@@ -78,7 +83,8 @@ class KalturaGroupUser extends KalturaObject implements IRelatedFilterable
 		"createdAt",
 		"updatedAt",
 		"creationMode",
-		"userRole"
+		"userRole",
+		"groupType",
 	);
 
 	public function getMapBetweenObjects ( )
@@ -103,4 +109,4 @@ public function getFilterDocs()
 	{
 		return array();	
 	}
-}
\ No newline at end of file
+}
diff --git a/api_v3/lib/types/KalturaUserAppRole.php b/api_v3/lib/types/KalturaUserAppRole.php
index 683754bdd6c..2353459c067 100644
--- a/api_v3/lib/types/KalturaUserAppRole.php
+++ b/api_v3/lib/types/KalturaUserAppRole.php
@@ -136,7 +136,7 @@ private function verifyMandatoryParams($puserId, $appGuid ,$userRoleId)
 	private static function isValidForInsert(kuser $kuser, $appGuid, $userRoleId)
 	{
 		// groups are not supported
-		if ($kuser->getType() === KuserType::GROUP)
+		if ($kuser->getType() === KuserType::GROUP || $kuser->getType() == KuserType::APPLICATIVE_GROUP)
 		{
 			throw new KalturaAPIException(KalturaErrors::USER_APP_ROLE_NOT_ALLOWED_FOR_GROUP);
 		}
diff --git a/api_v3/lib/types/enums/KalturaGroupType.php b/api_v3/lib/types/enums/KalturaGroupType.php
new file mode 100644
index 00000000000..bd7f10423e4
--- /dev/null
+++ b/api_v3/lib/types/enums/KalturaGroupType.php
@@ -0,0 +1,10 @@
+<?php
+/**
+ * @package api
+ * @subpackage enum
+ */
+
+class KalturaGroupType extends KalturaEnum implements GroupType
+{
+	// see GroupType interface
+}
diff --git a/api_v3/lib/types/filters/KalturaGroupUserFilter.php b/api_v3/lib/types/filters/KalturaGroupUserFilter.php
index 474c7da8845..68155994264 100644
--- a/api_v3/lib/types/filters/KalturaGroupUserFilter.php
+++ b/api_v3/lib/types/filters/KalturaGroupUserFilter.php
@@ -5,6 +5,10 @@
  */
 class KalturaGroupUserFilter extends KalturaGroupUserBaseFilter
 {
+	/**
+	 * @var KalturaGroupType
+	 */
+	public $groupType;
 
 	static private $map_between_objects = array	();
 
@@ -21,7 +25,6 @@ public function getMapBetweenObjects()
 		return array_merge(parent::getMapBetweenObjects(), self::$map_between_objects);
 	}
 
-
 	protected function validateUserIdOrGroupIdFiltered()
 	{
 		if(!$this->userIdEqual && !$this->userIdIn && !$this->groupIdEqual && !$this->groupIdIn)
@@ -42,7 +45,7 @@ public function getListResponse(KalturaFilterPager $pager, KalturaDetachedRespon
 			$c = new Criteria();
 			$c->add(kuserPeer::PARTNER_ID, $partnerId);
 			$c->add(kuserPeer::PUSER_ID, $this->groupIdEqual);
-			$c->add(kuserPeer::TYPE, KuserType::GROUP);
+			$c->add(kuserPeer::TYPE, $this->groupType);
 			if (kCurrentContext::$ks_partner_id == Partner::BATCH_PARTNER_ID) //batch should be able to get categoryUser of deleted users.
 				kuserPeer::setUseCriteriaFilter(false);
 
@@ -124,7 +127,7 @@ public function getListResponse(KalturaFilterPager $pager, KalturaDetachedRespon
 			$c = new Criteria();
 			$c->add(kuserPeer::PARTNER_ID, $partnerId, Criteria::EQUAL);
 			$c->add(kuserPeer::PUSER_ID, $groupIdIn, Criteria::IN);
-			$c->add(kuserPeer::TYPE, KuserType::GROUP);
+			$c->add(kuserPeer::TYPE, $this->groupType);
 			$kusers = kuserPeer::doSelect($c);
 
 			if (!$kusers)
diff --git a/api_v3/services/GroupUserService.php b/api_v3/services/GroupUserService.php
index 0f7e5e0571c..12bf0e54b04 100644
--- a/api_v3/services/GroupUserService.php
+++ b/api_v3/services/GroupUserService.php
@@ -37,8 +37,11 @@ function addAction(KalturaGroupUser $groupUser)
 
 		//verify kgroup exists
 		$kgroup = kuserPeer::getKuserByPartnerAndUid( $partnerId, $groupUser->groupId);
-		if ( !$kgroup || $kgroup->getType() != KuserType::GROUP)
+		$groupTypes = array(KuserType::GROUP, KuserType::APPLICATIVE_GROUP);
+		if (!$kgroup || !in_array($kgroup->getType(), $groupTypes))
+		{
 			throw new KalturaAPIException ( KalturaErrors::GROUP_NOT_FOUND, $groupUser->userId );
+		}
 
 		//verify kuser does not belongs to kgroup
 		$kuserKgroup = KuserKgroupPeer::retrieveByKuserIdAndKgroupId($kuser->getId(), $kgroup->getId());
@@ -431,21 +434,52 @@ protected function validateKuserkGroupCoExistence(kuser $kGroup, $kuserId)
 
 	protected function validateMaxGroupsPerUser($partnerId, $kuserId)
 	{
-		$criteria = new Criteria();
-		$criteria->add(KuserKgroupPeer::KUSER_ID, $kuserId);
-		$criteria->add(KuserKgroupPeer::STATUS, KuserKgroupStatus::ACTIVE);
+		$maxGroupsPerUser = $this->getPartnerMaximumGroupsPerUser($partnerId);
+
+		$kuserGroupList = $this->retrieveActiveGroupsForKuser($kuserId);
+		if (count($kuserGroupList) < $maxGroupsPerUser)
+		{
+			return;
+		}
+
+		$countLimitedGroups = $this->countLimitedGroups($kuserGroupList);
+		if ($countLimitedGroups >= $maxGroupsPerUser)
+		{
+			throw new KalturaAPIException (KalturaErrors::USER_EXCEEDED_MAX_GROUPS);
+		}
+	}
 
-		$maxGroupsPerUser = GroupUserService::DEFAULT_MAX_NUMBER_OF_GROUPS_PER_USER;
+	protected function getPartnerMaximumGroupsPerUser($partnerId)
+	{
 		$groupUserCountLimitMap = kConf::get('group_user_count_limit', 'local', array());
 		$partnersList = array_keys($groupUserCountLimitMap);
 		if (in_array($partnerId, $partnersList))
 		{
-			$maxGroupsPerUser = $groupUserCountLimitMap[$partnerId];
+			return $groupUserCountLimitMap[$partnerId];
 		}
 
-		if (KuserKgroupPeer::doCount($criteria) >= $maxGroupsPerUser)
+		return GroupUserService::DEFAULT_MAX_NUMBER_OF_GROUPS_PER_USER;
+	}
+
+	protected function retrieveActiveGroupsForKuser($kuserId)
+	{
+		$criteria = new Criteria();
+		$criteria->add(KuserKgroupPeer::KUSER_ID, $kuserId);
+		$criteria->add(KuserKgroupPeer::STATUS, KuserKgroupStatus::ACTIVE);
+		return KuserKgroupPeer::doSelect($criteria);
+	}
+
+	protected function countLimitedGroups($kuserGroupList)
+	{
+		$countLimitedGroups = 0;
+		foreach ($kuserGroupList as $kuserGroup)
 		{
-			throw new KalturaAPIException (KalturaErrors::USER_EXCEEDED_MAX_GROUPS);
+			/** @var KuserKgroup $kuserGroup */
+			if ($kuserGroup->getGroupType() == GroupType::GROUP)
+			{
+				$countLimitedGroups += 1;
+			}
 		}
+		return $countLimitedGroups;
 	}
 }
diff --git a/plugins/bulk_upload/csv/lib/model/kBulkGroupUserSyncCsv.php b/plugins/bulk_upload/csv/lib/model/kBulkGroupUserSyncCsv.php
index aa9d78109dd..3131587e846 100644
--- a/plugins/bulk_upload/csv/lib/model/kBulkGroupUserSyncCsv.php
+++ b/plugins/bulk_upload/csv/lib/model/kBulkGroupUserSyncCsv.php
@@ -47,6 +47,11 @@ protected function buildUserMap($users)
 		foreach ($users as $user)
 		{
 			/**@var kuser $user*/
+			if ($user->getType() == KuserType::APPLICATIVE_GROUP)
+			{
+				continue;
+			}
+
 			$this->userMap[$user->getId()][self::MODE] = $user->getUserMode();
 			$this->userMap[trim($user->getPuserId())][self::MODE] = $user->getUserMode();
 			$this->userMap[$user->getId()][self::TYPE] = $user->getType();
@@ -59,11 +64,9 @@ public function getSyncGroupUsers($removeFromExistingGroups, $createNewGroups)
 		$requestGroupIds = array_map('trim', $this->groupIds);
 		$partnerId = $this->kuser->getPartnerId();
 		$currentUserGroups = KuserKgroupPeer::retrieveByKuserIds(array($this->kuser->getId()));
-		$currentKgroupsIds = array();
 		$currentPgroupsIds = array();
 		foreach ($currentUserGroups as $currentUserGroup)
 		{
-			$currentKgroupsIds[] = $currentUserGroup->getKgroupId();
 			$currentPgroupsIds[] = $currentUserGroup->getPgroupId();
 		}
 
diff --git a/plugins/group/lib/api/KalturaGroup.php b/plugins/group/lib/api/KalturaGroup.php
index 6512cd24f9a..ba4acf701ba 100644
--- a/plugins/group/lib/api/KalturaGroup.php
+++ b/plugins/group/lib/api/KalturaGroup.php
@@ -17,6 +17,11 @@ class KalturaGroup extends KalturaBaseUser
 	 */
 	public $processStatus;
 
+	/**
+	 * @var KalturaGroupType
+	 */
+	public $groupType;
+
 	private static $names = array('fullName' => 'getFullName', 'screenName' => 'getScreenName');
 
 	private static $map_between_objects = array
@@ -35,7 +40,8 @@ public function toObject($dbObject = null, $skip = array())
 		if (is_null($dbObject))
 		{
 			$dbObject = new kuser();
-			$dbObject->setType(KuserType::GROUP);
+			$groupType = $this->groupType ?? KuserType::GROUP;
+			$dbObject->setType($groupType);
 		}
 		parent::toObject($dbObject, $skip);
 		return $dbObject;
@@ -74,5 +80,4 @@ public function clonedObject($dbOriginalGroup, $newGroupId, $newGroupName)
 		$dbObject->setPartnerId($dbOriginalGroup->getPartnerId());
 		return $dbObject;
 	}
-
-}
\ No newline at end of file
+}
diff --git a/plugins/group/lib/api/KalturaGroupFilter.php b/plugins/group/lib/api/KalturaGroupFilter.php
index cb25ac3d732..b2833ea7346 100644
--- a/plugins/group/lib/api/KalturaGroupFilter.php
+++ b/plugins/group/lib/api/KalturaGroupFilter.php
@@ -5,12 +5,18 @@
  */
 class KalturaGroupFilter extends KalturaUserFilter
 {
+	/**
+	 * @var KalturaGroupType
+	 */
+	public $groupType;
+
 	public function getListResponse(KalturaFilterPager $pager, KalturaDetachedResponseProfile $responseProfile = null)
 	{
 		$c = KalturaCriteria::create(kuserPeer::OM_CLASS);
 		$groupFilter = $this->toObject();
 		$groupFilter->attachToCriteria($c);
-		$c->addAnd(kuserPeer::TYPE,KuserType::GROUP);
+		$groupType = $this->groupType ?? KuserType::GROUP;
+		$c->addAnd(kuserPeer::TYPE, $groupType);
 		$c->addAnd(kuserPeer::PUSER_ID, NULL, KalturaCriteria::ISNOTNULL);
 		$pager->attachToCriteria($c);
 		$list = kuserPeer::doSelect($c);
@@ -21,4 +27,4 @@ public function getListResponse(KalturaFilterPager $pager, KalturaDetachedRespon
 		$response->totalCount = $totalCount;
 		return $response;
 	}
-}
\ No newline at end of file
+}
diff --git a/plugins/group/services/GroupService.php b/plugins/group/services/GroupService.php
index e5b83fd32d9..821ac28452d 100644
--- a/plugins/group/services/GroupService.php
+++ b/plugins/group/services/GroupService.php
@@ -125,7 +125,8 @@ public function listAction(KalturaGroupFilter $filter = null, KalturaFilterPager
 	protected function getGroup($groupId)
 	{
 		$dbGroup = kuserPeer::getKuserByPartnerAndUid($this->getPartnerId(), $groupId);
-		if(!$dbGroup || $dbGroup->getType() != KuserType::GROUP)
+		$groupTypes = array(KuserType::GROUP, KuserType::APPLICATIVE_GROUP);
+		if(!$dbGroup || !in_array($dbGroup->getType(), $groupTypes))
 		{
 			throw new KalturaAPIException(KalturaGroupErrors::INVALID_GROUP_ID);
 		}
@@ -258,4 +259,4 @@ protected function getKusersFromKuserKgroup($groupUsers)
 		}
 		return $kusers;
 	}
-}
\ No newline at end of file
+}
diff --git a/plugins/virtual_event/services/VirtualEventService.php b/plugins/virtual_event/services/VirtualEventService.php
index 6becf37a97d..974da93f07f 100644
--- a/plugins/virtual_event/services/VirtualEventService.php
+++ b/plugins/virtual_event/services/VirtualEventService.php
@@ -183,7 +183,8 @@ protected function validateGroups (KalturaVirtualEvent $virtualEvent)
 	protected function isValidGroup($groupId)
 	{
 		$dbGroup = kuserPeer::getKuserByPartnerAndUid($this->getPartnerId(), $groupId);
-		if(!$dbGroup || $dbGroup->getType() != KuserType::GROUP)
+		$groupTypes = array(KuserType::GROUP, KuserType::APPLICATIVE_GROUP);
+		if(!$dbGroup || !in_array($dbGroup->getType(), $groupTypes))
 		{
 			throw new KalturaAPIException(KalturaGroupErrors::INVALID_GROUP_ID, $groupId);
 		}