I’m considering creating a multiplatform library using KMM. I would like to produce aar for Android and framework for iOS and then consume them in client apps which are developed as separate projects. Is this possible with KMM? Are there any guidelines on how to setup the project to produce proper binaries for both Android and iOS?

Yes, please look at this documentation page. It seems like a good place to begin with.

Great, thank you! I googled but I was only able to find documentation for KMP.