When you acquire a website hosting server with the intent to start your own website hosting company and to resell plans to other people, you may also need to sell domains, in order to give your clients the opportunity to obtain everything they want for their new website from a single place. To become an accredited registrar involves thousands of dollars and a lot of documentation, so the most convenient solution would be to sign up for a domain name reseller account with a current registrar company. Your reseller site will be connected to that account via the registrar's API. Using this type of account has a large number of benefits - your customers will be able to purchase and to manage new domains without difficulty; the cost of a new registration is lower as compared to what you would have to spend as an end customer; also you can start reselling without delay. The registrar businesses which provide domain reseller accounts often require a certain amount of money as a deposit.
