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I have a website www.example.com running on Magento 1.7 and I plan on making a Test website on another server.

Basically moving files and database on example.com and place it under different URL, let say "www.secondsite.com Will there be a problem with Magento extension?

I heard if you move website to a different URL, Magento extension will send information to Extension creator server and it will block them from working on BOTH sites (Test site- www.secondsite.com) and my live website www.example.com"

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Copy the the website to the new server and change the 2 URLs in core_config_data in your database. Flush cache. There shouldn't be a problem with extensions unless they specifically stipulate it is only for 1 domain.

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Extension should not be a problem at all, If the extensions are paid you just need to inform the provider and they shall add your staging website in their database and your extension shall work without any issue. Generally all extension provider has that facility where their sold paid extension can run on two different websites.

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