Cancelling a sole proprietorship in mainland Dubai involves a streamlined process to ensure compliance with legal and regulatory requirements. As a sole proprietor, the business owner must first decide to cease operations and prepare to settle all outstanding financial obligations. This includes clearing any debts, paying off taxes, and fulfilling liabilities to creditors. The owner must also ensure that any contractual obligations are resolved to avoid future legal complications.

The next step is to obtain clearances from relevant government authorities, such as the Ministry of Human Resources and Emiratisation (MOHRE) and the General Directorate of Residency and Foreigners Affairs (GDRFA). These clearances confirm that there are no outstanding issues related to employees or residency visas. If the sole proprietorship employs staff, their work visas and labor cards must be cancelled as part of the closure process.

Once these preliminary steps are completed, the owner can apply for license cancellation with the Department of Economic Development (DED). This requires submitting necessary documents, including the original trade license, clearance certificates, and any other relevant paperwork. Upon approval, the DED issues a cancellation certificate, formally confirming the closure of the sole proprietorship. This process ensures that the business is legally dissolved, allowing the owner to exit the market without lingering liabilities.