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My son was born in UK on Jan, 2010. I will be applying for my ILR in May, 2011. So my son would be only 15 months old when I apply for my ILR. Will I be able to add his name to my ILR application (SET (O)) form ? If no, what are the best options for me ? Can I register him for British citizen after I get my ILR? If yes, what are steps involved to get him registered to obtain the british passport? What are the timeframes involved. Please let me know.

Can I register him for British citizen after I get my ILR?

You can indeed, as the child was born in the UK. Use form MN1, and make the application under section 1(3), to get your child a Certificate of Registration as British. Such an application is an entitlement application .... no UKBA discretion involved. Section 1(3) applications are dealt with quickly, invariably in less than one month.

In view of the above, don't waste money getting ILR for your child.

Thanks a lot John. Any idea, what happens after you apply the MN1 form? Will they issue some registration certificate that I need to provide when applying for my son's british passport ? What are the timeline involved for each step?

Also, Is he eligibe for going to the PR route since he is only 15 months old (not completed 2 years as dependent).

Thanks

You could apply for ILR for him, but that will cost money, and would soon be irrelevant.

After you have your ILR, submit the form MN1, which as already said is an entitlement application invariably taking less than one month.

Then after receiving the Certificate of Registration, through the post, apply for a British passport for your son. Application form from Post Office. Suggest after that is completed, use the "Check and Send" service at the Post Office. Time to issue British passports varies through the year, but a guess would be a couple of weeks.