Apologies if this has been covered previously, I've no doubt that it has, but I tried searching and became lost in post search bumpf.
My daughter lives in Canada and is UK born and a full UK citizen.
She has a child under 16 born in Canada.
Am I correct when I say:...
1. The child is a UK citizen by descent.
2. The child can claim permanent UK citizenship simply by applying for a first UK passport?
If so, has anyone experience of this and were there any obstacles to be wary of?
Many thanks for your interest.

1. Yes
2. Yes

I am shortly going to do this for my soon to be 16 year old daughter & her 13 year old sister.

Many thanks for your replies.
The reason for asking the question is that the UK GOV website is confusing if you go down the wrong rabbit hole.

I am experiencing the same confusion. The passport form asks for national health insurance number. We do not have that because our children were not born in the UK, their father was.

We are looking to return to the UK and I’d prefer my children to have UK citizenship and passport prior to moving. Then only apply for the family visa for myself as the spouse.

Are you completing the correct form?

https://www.gov.uk/overseas-passports