Choosing a hosting package depends on your requirements. If your website has limited traffic and you do not wish to install any applications on the server, a shared hosting package should be fine.
However, if you would like to have root access over the server to install applications and you do not require much resources i.e. you require moderate resources a VPS should be fine for you.
If your requirements are not fulfilled by a VPS and you need more resources as well as Root access to the server, a Dedicated server is the ideal solution for you
