diff --git a/CHANGELOG.rst b/CHANGELOG.rst
index 137d475..b3165af 100644
--- a/CHANGELOG.rst
+++ b/CHANGELOG.rst
@@ -19,6 +19,9 @@ Added
 ^^^^^
 - Support for user-defined generic types (`#366
   <https://github.com/omni-us/jsonargparse/issues/366>`__).
+- New function ``extend_base_type`` for easy creation and registering of custom
+  types that extend a base type (`#195
+  <https://github.com/omni-us/jsonargparse/issue/195>`__).
 - Support for Python 3.12.
 
 Fixed
@@ -38,6 +41,8 @@ Changed
 - ``add_subclass_arguments`` now shows a better error message when an empty
   tuple is given (`lightning#18546
   <https://github.com/Lightning-AI/lightning/issues/18546>`__).
+- Document the requirements for creating and using custom types (`#195
+  <https://github.com/omni-us/jsonargparse/issue/195>`__).
 - Removed support for python 3.6.
 
 
diff --git a/DOCUMENTATION.rst b/DOCUMENTATION.rst
index 46dc308..7363c17 100644
--- a/DOCUMENTATION.rst
+++ b/DOCUMENTATION.rst
@@ -331,6 +331,24 @@ Having a CLI function this could be easily implemented with
     :func:`.CLI` is by using :func:`.capture_parser`.
 
 
+Functions as type
+-----------------
+
+Using a function as a type, like ``int_or_off`` below, is supported though
+discouraged. A basic requirement is that the function be idempotent, i.e.,
+applying the function two or more times should not modify the value. Instead of
+a function, it is recommended to implement a type, see :ref:`custom-types`.
+
+.. testcode::
+
+    # either int larger than zero or 'off' string
+    def int_or_off(x):
+        return x if x == "off" else int(x)
+
+
+    parser.add_argument("--int_or_off", type=int_or_off)
+
+
 .. _type-hints:
 
 Type hints
@@ -448,14 +466,6 @@ are:
     parser.add_argument("--op2", type=from_0_to_10)
 
 
-    # either int larger than zero or 'off' string
-    def int_or_off(x):
-        return x if x == "off" else PositiveInt(x)
-
-
-    parser.add_argument("--op3", type=int_or_off)
-
-
 .. _restricted-strings:
 
 Restricted strings
@@ -1090,6 +1100,66 @@ requires to give both a serializer and a deserializer as seen below.
     :func:`.register_type` then the sub-class option is no longer available.
 
 
+.. _custom-types:
+
+Creating custom types
+---------------------
+
+It is possible to create new types and use them for parsing. Even though types
+can be created for specific CLI behaviors, it is recommended to create them such
+that they make sense independent of parsing. This is so that they can be used as
+type hints in functions and classes in order to improve the code in a more
+general sense.
+
+There are a few ways for creating types, the most simple being to implement a
+class. When creating a type, take as reference how basic types work, e.g.
+``int``. Properties of basic types are:
+
+- Casting a string creates an instance of the type, if the value is valid, e.g.
+  ``int("1")``.
+- Casting a string raises a ``ValueError``, if the value is not valid, e.g.
+  ``int("a")``.
+- Casting an instance of the type to string gives back the string representation
+  of the value, e.g. ``str(1) == "1"``.
+- Types are idempotent, i.e. casting an instance of the type to the type gives
+  back the same value, e.g. ``int(1) == int(int(1))``.
+
+Once a type is created, it can be registered with :func:`.register_type`. If the
+type follows the properties above, then there is no need to provide more
+parameters, just do ``register_type(MyType)``.
+
+The :func:`.extend_base_type` function can be useful for creating and
+registering new types in a single call. For example, creating a type for even
+integers could be done as:
+
+.. testcode::
+
+    from jsonargparse.typing import extend_base_type
+
+    def is_even(type_class, value):
+        if int(value) % 2 != 0:
+            raise ValueError(f"{value} is not even")
+
+    EvenInt = extend_base_type("EvenInt", int, is_even)
+
+Then this type can be used in a parser as:
+
+.. doctest::
+
+    >>> parser = ArgumentParser()
+    >>> parser.add_argument("--even_int", type=EvenInt)  # doctest: +IGNORE_RESULT
+    >>> parser.parse_args(["--even_int=2"])
+    Namespace(even_int=2)
+
+When using custom types as a type hint, defaults must be casted so that static
+type checkers don't complain. For example:
+
+.. testcode::
+
+    def fn(value: EvenInt = EvenInt(2)):
+        ...
+
+
 .. _nested-namespaces:
 
 Nested namespaces
diff --git a/jsonargparse/typing.py b/jsonargparse/typing.py
index 33e40a6..9bf65c0 100644
--- a/jsonargparse/typing.py
+++ b/jsonargparse/typing.py
@@ -15,6 +15,7 @@ __all__ = [
     "final",
     "is_final_class",
     "register_type",
+    "extend_base_type",
     "restricted_number_type",
     "restricted_string_type",
     "path_type",
@@ -49,14 +50,28 @@ registered_type_handlers: Dict[type, "RegisteredType"] = {}
 registration_pending: Dict[str, Callable] = {}
 
 
-def create_type(
+def extend_base_type(
     name: str,
     base_type: type,
-    check_value: Callable,
-    register_key: Optional[Tuple] = None,
+    validation_fn: Callable,
     docstring: Optional[str] = None,
     extra_attrs: Optional[dict] = None,
+    register_key: Optional[Tuple] = None,
 ) -> type:
+    """Creates and registers an extension of base type.
+
+    Args:
+        name: How the new type will be called.
+        base_type: The type from which the created type is extended.
+        validation_fn: Function that validates the value on instantiation/casting. Gets two arguments: type_class and
+            value.
+        docstring: The __doc__ attribute value for the created type.
+        extra_attrs: Attributes set to the type class that the validation_fn can access.
+        register_key: Used to determine the uniqueness of registered types.
+
+    Raises:
+        ValueError: If the type has already been registered with a different name.
+    """
     if register_key in registered_types:
         registered_type = registered_types[register_key]
         if registered_type.__name__ != name:
@@ -64,11 +79,12 @@ def create_type(
         return registered_type
 
     class TypeCore:
-        _check_value = check_value
+        _validation_fn = validation_fn
+        _type = base_type
 
         def __new__(cls, v):
-            cls._check_value(cls, v)
-            return super().__new__(cls, v)
+            cls._validation_fn(cls, v)
+            return super().__new__(cls, cls._type(v))
 
     if extra_attrs is not None:
         for key, value in extra_attrs.items():
@@ -133,7 +149,7 @@ def restricted_number_type(
         "_type": base_type,
     }
 
-    def check_value(cls, v):
+    def validation_fn(cls, v):
         if isinstance(v, bool):
             raise ValueError(f"{v} not a number")
         if cls._type == int and isinstance(v, float) and not float.is_integer(v):
@@ -143,10 +159,10 @@ def restricted_number_type(
         if (cls._join == "and" and not all(check)) or (cls._join == "or" and not any(check)):
             raise ValueError(f"{v} does not conform to restriction {cls._expression}")
 
-    return create_type(
+    return extend_base_type(
         name=name,
         base_type=base_type,
-        check_value=check_value,
+        validation_fn=validation_fn,
         register_key=register_key,
         docstring=docstring,
         extra_attrs=extra_attrs,
@@ -178,14 +194,14 @@ def restricted_string_type(
         "_type": str,
     }
 
-    def check_value(cls, v):
+    def validation_fn(cls, v):
         if not cls._regex.match(v):
             raise ValueError(f"{v} does not match regular expression {cls._regex.pattern}")
 
-    return create_type(
+    return extend_base_type(
         name=name,
         base_type=str,
-        check_value=check_value,
+        validation_fn=validation_fn,
         register_key=(expression, str),
         docstring=docstring,
         extra_attrs=extra_attrs,

diff --git a/jsonargparse_tests/test_typing.py b/jsonargparse_tests/test_typing.py
index f75096d..47c0b4b 100644
--- a/jsonargparse_tests/test_typing.py
+++ b/jsonargparse_tests/test_typing.py
@@ -20,6 +20,7 @@ from jsonargparse.typing import (
     OpenUnitInterval,
     PositiveFloat,
     PositiveInt,
+    extend_base_type,
     get_registered_type,
     register_type,
     register_type_on_first_use,
@@ -194,6 +195,17 @@ def test_type_function_parse(parser):
     pytest.raises(ArgumentError, lambda: parser.parse_object({"multi_gt0_or_off": [1, 0]}))
 
 
+def test_extend_base_type(parser):
+    def is_even(t, v):
+        if int(v) % 2 != 0:
+            raise ValueError(f"{v} is not even")
+
+    EvenInt = extend_base_type("EvenInt", int, is_even)
+    parser.add_argument("--even_int", type=EvenInt)
+    assert 2 == parser.parse_args(["--even_int=2"]).even_int
+    pytest.raises(ArgumentError, lambda: parser.parse_args(["--even_int=3"]))
+
+
 # restricted string tests
 
 

Custom Types documentation
As a result of the changes that were made in jsonargparse for parsing types, some of the examples for argparse itself don't work completely.

This is an example from the argparse documentation on how to handle custom types
```
def hyphenated(string):
    return '-'.join([word[:4] for word in string.casefold().split()])

parser = argparse.ArgumentParser()
_ = parser.add_argument('short_title', type=hyphenated)
parser.parse_args(['"The Tale of Two Cities"'])
```

This doesn't work completely in jsonargparse, because when printing the help screen it wants to print the type. The type part of the string just gets garbled into a reference to the memory location of the function. 

Looking through the code there seem to be some complexities in getting a custom type implemented. Namely the use of the metaclass type, and some setup that the code wants implementing when calling the type constructor.

Saying that I notice that there was a function called create_type. It seems to provide all the abstractions required to make a custom_type.

It seems to strike a good balance between having control, and not being overly complicated. However, it currently is not documented. 

This is an example of a test function
```
def interval2()-> Type:
    def check_value(cls, v):

        if v%5!=0:
            raise ValueError(f'This is value is invalid')
    return create_type("interval23",base_type=int,check_value=check_value,extra_attrs={"_type":int})
interval=interval2()
    
```






jsonargparse_tests/test_typing.py::test_public_api jsonargparse_tests/test_typing.py::test_positive_int jsonargparse_tests/test_typing.py::test_non_negative_int jsonargparse_tests/test_typing.py::test_positive_float jsonargparse_tests/test_typing.py::test_non_negative_float jsonargparse_tests/test_typing.py::test_closed_unit_interval jsonargparse_tests/test_typing.py::test_open_unit_interval jsonargparse_tests/test_typing.py::test_restricted_number_invalid_type jsonargparse_tests/test_typing.py::test_restricted_number_already_registered jsonargparse_tests/test_typing.py::test_restricted_number_not_equal_operator jsonargparse_tests/test_typing.py::test_restricted_number_operator_join jsonargparse_tests/test_typing.py::test_non_negative_float_add_argument jsonargparse_tests/test_typing.py::test_restricted_number_add_argument_optional jsonargparse_tests/test_typing.py::test_restricted_number_add_argument_optional_nargs_plus jsonargparse_tests/test_typing.py::test_restricted_number_positional_nargs_questionmark jsonargparse_tests/test_typing.py::test_restricted_number_optional_union jsonargparse_tests/test_typing.py::test_restricted_number_dump jsonargparse_tests/test_typing.py::test_type_function_parse jsonargparse_tests/test_typing.py::test_extend_base_type jsonargparse_tests/test_typing.py::test_email jsonargparse_tests/test_typing.py::test_optional_email_parse jsonargparse_tests/test_typing.py::test_non_empty_string jsonargparse_tests/test_typing.py::test_restricted_string_already_registered jsonargparse_tests/test_typing.py::test_restricted_string_parse jsonargparse_tests/test_typing.py::test_restricted_string_dump jsonargparse_tests/test_typing.py::test_timedelta_deserializer[1:2:3-1:02:03] jsonargparse_tests/test_typing.py::test_timedelta_deserializer[0:05:30-0:05:30] jsonargparse_tests/test_typing.py::test_timedelta_deserializer[3 jsonargparse_tests/test_typing.py::test_timedelta_deserializer[345:0:0-14 jsonargparse_tests/test_typing.py::test_timedelta_deserializer_failure[not jsonargparse_tests/test_typing.py::test_timedelta_deserializer_failure[1234] jsonargparse_tests/test_typing.py::test_bytes[-] jsonargparse_tests/test_typing.py::test_bytes[iVBORw0KGgo=-\x89PNG\r\n\x1a\n] jsonargparse_tests/test_typing.py::test_bytes[AAAAB3NzaC1yc2E=-\x00\x00\x00\x07ssh-rsa] jsonargparse_tests/test_typing.py::test_bytearray[-] jsonargparse_tests/test_typing.py::test_bytearray[iVBORw0KGgo=-\x89PNG\r\n\x1a\n] jsonargparse_tests/test_typing.py::test_bytearray[AAAAB3NzaC1yc2E=-\x00\x00\x00\x07ssh-rsa] jsonargparse_tests/test_typing.py::test_range[range(5)-expected0-=] jsonargparse_tests/test_typing.py::test_range[range(-2)-expected1-=] jsonargparse_tests/test_typing.py::test_range[range(2, jsonargparse_tests/test_typing.py::test_range[range(-6, jsonargparse_tests/test_typing.py::test_range[range(1, jsonargparse_tests/test_typing.py::test_range[range(-1, jsonargparse_tests/test_typing.py::test_range[range(0, jsonargparse_tests/test_typing.py::test_range_deserialize_failure jsonargparse_tests/test_typing.py::test_pickle_module_type[PositiveInt] jsonargparse_tests/test_typing.py::test_pickle_module_type[NonNegativeInt] jsonargparse_tests/test_typing.py::test_pickle_module_type[PositiveFloat] jsonargparse_tests/test_typing.py::test_pickle_module_type[NonNegativeFloat] jsonargparse_tests/test_typing.py::test_pickle_module_type[ClosedUnitInterval] jsonargparse_tests/test_typing.py::test_pickle_module_type[OpenUnitInterval] jsonargparse_tests/test_typing.py::test_pickle_module_type[NotEmptyStr] jsonargparse_tests/test_typing.py::test_pickle_module_type[Email] jsonargparse_tests/test_typing.py::test_pickle_module_type[Path_fr] jsonargparse_tests/test_typing.py::test_pickle_module_type[Path_fc] jsonargparse_tests/test_typing.py::test_pickle_module_type[Path_dw] jsonargparse_tests/test_typing.py::test_pickle_module_type[Path_dc] jsonargparse_tests/test_typing.py::test_pickle_module_type[Path_drw] jsonargparse_tests/test_typing.py::test_module_name_clash jsonargparse_tests/test_typing.py::test_register_non_bool_cast_type jsonargparse_tests/test_typing.py::test_register_type_datetime jsonargparse_tests/test_typing.py::test_register_type_on_first_use jsonargparse_tests/test_typing.py::test_decimal jsonargparse_tests/test_typing.py::test_uuid