If you buy a web hosting server with the intention to start your own hosting company and to resell plans to various people, you may as well need to sell domain names, so as to give your clients the opportunity to obtain everything they need for their new website from one place. To be a licensed registrar involves thousands of dollars plus tons of documentation, so the most convenient solution would be to register for a domain reseller account with a pre-existing registrar company. Your reseller site will be connected to that account by using the registrar's API. Using such an account has various advantages - your customers can buy and to control new domain names without any difficulty; the price for a brand new registration is lower as compared to what you would need to spend as an end customer; what's more you will be able to start reselling at once. The registrar companies which supply domain reseller accounts in most cases ask for an amount of money as a deposit.