Set up a Development Environment for Creating SharePoint Hosted App

“Apps for SharePoint are easy-to-use, lightweight web applications that integrate popular web standards and technologies to extend the capabilities of a SharePoint website.” [MSDN]
 
Configuring an on-premises development environment for Apps

Prerequisites

• A windows server machine ,  installed and configured for SharePoint
• Microsoft SQL server
• Microsoft visual studio

1. Confirm that the SharePoint Administration (spadmin) and SharePoint Timer (sptimer) services are running.

• Start -> Administrative Tools-> Services
• Or using command prompt 
•  net start spadminv4
•  net start spadminv4

2. Start “App Management Service” and “Microsoft SharePoint Foundation Subscription Settings service”

• Go to SharePoint Central Administration
• Application Management -> Service Applications -> Manage Services on Server
• Start App Management Service
• Start Microsoft SharePoint Foundation Subscription Settings service

3. Make sure your user (not SP-Farm) has the following permissions

• securityadmin fixed server role on the SQL Server instance
• db_owner fixed database role on all databases that are to be updated
• Administrators group on the server on which you are running the Windows PowerShell cmdlets

If not assign those permissions to that user

4. Create service applications - Need to create following service applications

• App Management Service Application
• Subscription Settings Service Application

Open the SharePoint Management Shell and run the following commands.
(Account should be the above account )

$account = Get-SPManagedAccount "domain\user"
$appPoolSubSvc = New-SPServiceApplicationPool -Name SettingsServiceAppPool -Account $account
$appPoolAppSvc = New-SPServiceApplicationPool -Name AppServiceAppPool -Account $account
$appSubSvc = New-SPSubscriptionSettingsServiceApplication -ApplicationPool $appPoolSubSvc -Name SettingsServiceApp -DatabaseName SettingsServiceDB
$proxySubSvc = New-SPSubscriptionSettingsServiceApplicationProxy -ServiceApplication $appSubSvc
$appAppSvc = New-SPAppManagementServiceApplication -ApplicationPool $appPoolAppSvc -Name AppServiceApp -DatabaseName AppServiceDB
$proxyAppSvc = New-SPAppManagementServiceApplicationProxy -ServiceApplication $appAppSvc

Then navigate to Central administration -> Application Management -> Service Applications - > Manage Service Application. You will be able to see the newly created above service applications.

5. Configuring App URLs

• Central Administration -> Apps -> Configure App URLs
•  Create the app domain name- Ex. App.mydomain.com
•  Create the app domain prefix – Ex. App

If the domain name is not a proper one make sure to add a DNS entry with that domain name in the Host file in the VM.

6. Create a web application

• Central Administration -> Application Management -> Web Application -> Manage Web Application -> Create a new web application

7. Create a new site collection under the web application created above

• Central Administration -> Application Management -> Site Collections -> Create Site Collections

Create a site collection with a “Developer Site” template 

8. Make sure that the user (created on step 3) has the Db-Owner permission to below databases if not, assign the Db-Owner permission to the user

• SharePoint_Config
• SharePoint_Admin_ [GUID]
• Current web application content database that needs to host the app
• App management service application database
• Subscription Settings service application database

9. Log in to the virtual machine again with the user account configured in the step 3 (Non-farm account)

10. Create App

• Open Visual Studio and create a new project with the template “App for SharePoint 2013” 
• Put a name for the Sharepoint app
•  Put above created site collection URL to sharepoint site for debugging 
•  Choose "SharePoint-Hosted" for the host type

11. Deploy the application

12. Add below Registry entries to the windows registry

• Go to “HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control\Lsa” 
•  Add a dword , name = DisableLoopbackCheck , value=1

• Go to “HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\LanmanServer\Parameters”
•  Add a dword , name= DisableStrictNameChecking , value=1 , type=decimal

13. Go to your developer site -> Apps In Testing -> Click on the app you have created

14. You will be redirected to the fresh app you just have created

More details read...

Set up an on-premises development environment for SharePoint Add-ins

http://social.technet.microsoft.com/wiki/contents/articles/25793.step-by-step-guide-to-configure-environment-for-creating-your-first-sharepoint-hosted-app.aspx

https://support.microsoft.com/en-us/kb/896861