Who handles Subdomains, the registrar or the hosting company?

Question by DonCoryon: Who handles Subdomains, the registrar or the hosting company?
I want to have multiple subdomains for my website. The domain registrar I am planning on using says they allow up to 5 subdomains. Since I need more subdomains than five, I contacted a hosting company. They stated that subdomains are folders inside the htdocs folder and all I need to do is create folders with root access.

So who controls the subdomains, the domain registrar or my hosting company (with root

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