If you buy a hosting server with the intention to start your very own web hosting company and to resell packages to other people, you may as well need to sell domain names, so that you can give your customers the opportunity to get everything they need for their new site from a single place. To become a licensed registrar involves thousands of dollars along with a considerable amount of documentation, so the most convenient solution is to sign up for a domain name reseller account with a current registrar company. Your reseller Internet site will be connected to that account via the registrar's API. Employing such an account has a lot of pros - all of your customers will be able to acquire and to take care of new domain names comfortably; the cost of a brand new registration will be lower when compared to what you would need to pay as an end customer; also you'll be able to start reselling at once. The registrar companies which offer domain reseller accounts usually require some money as a deposit.