I am in search for a reseller web hosting where there should be an option to create sub reseller. if any one knows such hosting company please forward the url.

IMO, you'd better go VPS which definitely covers all your needs.

I agree with linuxuser from a point of view, in that I'm not a fan of the sub reseller idea. It can make server management harder, especially in the long run, as more and more accounts are added, and the server gets more loaded.

The only trouble is, these days, I'm not so sure a VPS should be used as a replacement for reseller accounts, especially the smaller VPSs.

Go for a VPS if you want to create subresellers under you. Also look for a hostgator reseller plans and theior semi-dedicated server plan which may allow you to do so.

Agree. Semi-dedicated server plan from Hostgator is an alternative choise for your needs. Anyway, the price is not low.

Hostgator's semidedicated package is not a reseller package. It only comes with cPanel, not WHM.