SUMMARY
Land is commonly used as shared capital in establishing limited company. It is used as shared capital because of economic consideration since it holds high economic value in certain times and the value is hard to decrease. Utilization of land as capital share in limited company also stimulates the occurrence of numerous issues since land contains numerous rights mainly concerning propriety rights of the land. The present study aims to elaborate further about ratio legisof propriety rights handed to limited company in regard to the use of land as capital participation in limited company. The method used in the present study is a normative legal research, namely legal research which is conducted by examining the library materials or secondary law while in finding and collecting the data is done by two approaches, namely the law and conceptual approaches. The present study shows that Ratio Legisof propriety rights handed to limited company is prohibited in order to avoid the breaching of maximum limit of land propriety rights. Propriety rights of land that is used as shared capital shall be declined into building rights title in order to change limited company status become legal subject which holds intermediate rights based on the regulation as propriety rights holder. Administration defect will be occurred when this requirement is not fulfilled in which this condition will stimulate the cancelation status of land propriety rights and it will be changed into land owned by the state.