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Hi,

I am British citizen by decent(Obtained through Tier 1 channel) and my wife had Indefinite leave to remain visa, our son was born in India and we had got Right of Abode Certificate of entitlement for him. He had been living with us in UK for past 3 years, now his visa is expiring next year same date as Indian passport expiry. I don't see the option of renewing it and as per my understanding I can't apply again because its eligible only for British citizen otherwise than by descent(correct me if I am wrong).
I believe I can't apply for British Citizenship directly but I have to apply for Indefinite Leave to Remain for our son. Please let me know my understanding is correct, also is there any other option available for me.

Thanks in advance.

Your understanding is incorrect.
If you were naturalised, then you are British otherwise than by descent.
If your son was born overseas after you naturalised, then he is automatically British by descent.
If your son is British, without a British passport, then he may continue to apply fro a CoE-RoA, as he had already successfully done so.

He cannot apply for British citizenship if he is already British. A British citizen cannot be granted leave to remain.

Thanks Vinny, your information was more helpful. Can I apply for British passport instead of CoE RoA.

Yes.

Thanks again Vinny for your valuable suggestion.