Well, technically, there is a limit, but it's rather unlikely that you reach that limit. According to the
Wikipedia article on the Ext3 filesystem, which is likely what your host uses, the limit is V/2^13 inodes, where V is the size of the volume in bytes.
So, assuming you have 2GB of storage space, you can have a maximum of 262,144 inodes. (files and/or directories) This number is a grand total - there isn't a set restriction on files in a directory, or directories in a directory.