The term 'Group Company', is not defined anywhere in the Companies Act of 1956.

But in general 'Group Company', is a company that is being held by some promoter or promoters that is in their control by virtue of shareholding powers or by virtue of Directorship. Then we can say that the company is a 'Group Company'. But according to the Accounting Standard (AS)-18 the stake of the shares that can be held should to the extent of only 50%.