diff --git a/app/Http/Requests/User/StoreUserRequest.php b/app/Http/Requests/User/StoreUserRequest.php
index 3ccc4df32757..ce8b5c9d6dae 100644
--- a/app/Http/Requests/User/StoreUserRequest.php
+++ b/app/Http/Requests/User/StoreUserRequest.php
@@ -43,6 +43,9 @@ class StoreUserRequest extends Request
             $rules['email'] = new ValidUserForCompany();
         }
 
+        if(auth()->user()->company()->account->isFreeHostedClient())
+            $rules['hosted_users'] = new CanAddUserRule(auth()->user()->company()->account);
+
         return $rules;
     }
 
diff --git a/app/Http/ValidationRules/Ninja/CanAddUserRule.php b/app/Http/ValidationRules/Ninja/CanAddUserRule.php
index 2a997db5f87a..75bf15f5e552 100644
--- a/app/Http/ValidationRules/Ninja/CanAddUserRule.php
+++ b/app/Http/ValidationRules/Ninja/CanAddUserRule.php
@@ -35,7 +35,7 @@ class CanAddUserRule implements Rule
      */
     public function passes($attribute, $value)
     {
-
+        return $this->account->num_users < $this->account->pending_num_users;
     }
 
     /**
@@ -43,7 +43,7 @@ class CanAddUserRule implements Rule
      */
     public function message()
     {
-        return ctrans('texts.limit_users', ['limit' => 1]);
+        return ctrans('texts.limit_users', ['limit' => $this->account->pending_num_users]);
     }
 
 }
diff --git a/app/Models/Account.php b/app/Models/Account.php
index 5bc798c73b91..8bfc6a651254 100644
--- a/app/Models/Account.php
+++ b/app/Models/Account.php
@@ -203,6 +203,14 @@ class Account extends BaseModel
         return $this->plan == 'free';
     }
 
+    public function isEnterpriseClient()
+    {
+        if(!Ninja::isNinja())
+            return false;
+
+        return $this->plan == 'enterprise';
+    }
+
     public function isTrial()
     {
         if (! Ninja::isNinja()) {
diff --git a/app/Repositories/UserRepository.php b/app/Repositories/UserRepository.php
index ef6f422abd13..7b78c8e5f371 100644
--- a/app/Repositories/UserRepository.php
+++ b/app/Repositories/UserRepository.php
@@ -23,10 +23,6 @@ use Illuminate\Http\Request;
  */
 class UserRepository extends BaseRepository
 {
-    public function __construct()
-    {
-    }
-
     /**
      * Gets the class name.
      *
@@ -60,10 +56,16 @@ class UserRepository extends BaseRepository
         }
 
         $company = auth()->user()->company();
-        $account_id = $company->account->id;
+        $account = $company->account;;
+
+        /* If hosted and Enterprise we need to increment the num_users field on the accounts table*/
+        if(!$user->id && $account->isEnterpriseClient()){
+            $account->num_users++;
+            $account->save();
+        }
 
         $user->fill($details);
-        $user->account_id = $account_id;
+        $user->account_id = $account->id;
         $user->save();
 
         if (isset($data['company_user'])) {
@@ -71,7 +73,7 @@ class UserRepository extends BaseRepository
 
             /*No company user exists - attach the user*/
             if (!$cu) {
-                $data['company_user']['account_id'] = $account_id;
+                $data['company_user']['account_id'] = $account->id;
                 $data['company_user']['notifications'] = CompanySettings::notificationDefaults();
                 $data['company_user']['is_migrating'] = $is_migrating;
                 $user->companies()->attach($company->id, $data['company_user']);
@@ -112,7 +114,6 @@ class UserRepository extends BaseRepository
     
         event(new UserWasDeleted($user, $company));
 
-
         return $user->fresh();
     }