What it mean by transfering a domain name?

[S.Eras]

If i register a domain name in one company and register a hosting package with another company, is that mean i must transfer my domain name to hosting company?
Or can I still have my domain name parked at its origin registered company without having to transfer it?

Need to know this because I don't want to pay extra money for transferring domain...

[Vera Chandler]

Transferring a domain name often takes five days or less, but transfers may take up to seven days to complete. To transfer a domain name, we need some assistance from you.

Domain Transfer Process:
1. You should advise your administrative contact that the domain name is being transferred.
2. We send an email message to your administrative contact by the next business day to request transfer approval.
3. When this acceptance is received, we send a transfer request to the registry.
4.The registry sends an email message to your current registrar.
5. Most likely, your current registrar sends your administrative contact an email message to ask for your approval of the transfer to our registry. Please respond as directed.
6. Your current registrar sends an acceptance or rejection notice to the registry.
7. The registry sends an email notice of the acceptance or rejection to us.
8. We send you an email message to inform you that the transfer is complete. Should the transfer fail, we will inform you.

Vera.
More help: http://domain-name-register-store.com