A domain name registrar is a company accredited by the Internet Corporation for Assigned Names and Numbers (ICANN) and/or by a national ccTLD authority to register Internet domain names. These "retail" companies are often distinct from the "wholesale" domain name registry operator.

The Internet Corporation for Assigned Names and Numbers, or ICANN, has authority over generic top-level domains, or gTLDs. Examples of gTLDs include .com, .net, .org and .mobi. ICANN does not have authority over ccTLDs, or Country Code Top-Level Domains, although it is quite common for domain name registrars to offer ccTLD registration services as well. Most registrars provide DNS hosting service, but this is not required, and is often considered a separate service.

History

Until 1999, there was no Shared Registration System (SRS). Network Solutions (NSI) operated the .com, .net, and .org registries, and was the de jure registrar and domain name registry operator. However, several companies had set up as de facto registrars, including NetNames, which invented the idea of a commercial standalone domain name registration service in 1996. Registrars formed another link in the value chain, introducing the concept of domain name sales, effectively introducing the wholesale model into the industry. NSI followed suit, forcing the issue of separation of Registry and Registrar.

In October 1998, following pressure from the growing domain name registration business and other interested parties, NSI's agreement with the US Department of Commerce was amended. This amendment required the creation of an SRS that supported multiple registrars. The SRS officially opened on November 30, 1999 under the supervision of ICANN, though there had been several testbed registrars using the system since March 11, 1999. Since then, over 500 registrars have entered the market for domain name registration services.

Designated registrar

An end-user cannot directly register and manage their domain name information with ICANN. A designated registrar must be chosen. Prior to 1999, the only .com registrar was NSI, but the approval of the SRS opened up the opportunity for other companies to be designated as registrars.

Each ICANN-accredited registrar must pay a fixed fee of US$4,000 plus a per-registrar variable fee totaling US$3.8 million divided among all registrars.

Only one designated registrar may modify or delete information about a domain name. The competition that SRS created enables end users to choose from many registrars offering different services at varying prices. It is not unusual for an end user to wish to switch registrars. Thus, there is the domain name transfer clause.

When a registrar registers a .com domain name for the end-user, it must pay a maximum annual fee of US$6.42 to VeriSign and a US$0.20 administration fee to ICANN. VeriSign is the registry manager for .com gTLD. Most domain registrars price their services and products to address both the annual fees and the administration fees that must be paid to ICANN. Barriers to entry into the bulk registrar industry are high for new companies without an existing customer base.