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Error occurred in deployment step 'Install App for SharePoint' App Management Shared Service Proxy is not installed.

If you just installed your new default development environment, you probably get the following error message:

"Error occurred in deployment step 'Install App for SharePoint': App Management Shared Service Proxy is not installed."

This error is because you do not have an App Management Service created and or the Subscription Settings Service in your Service Applications. To resolve this issue go to Central Administration and click the link "Manage service applications" under Application Management. Create the App Management Service application by clicking New → App Management Service. Type an applicable name of the service and application pool. For my development machine I left the other values default. Do this also to create the Subscription Settings Service.

Create an isolated app domain on your development computer

Microsoft has provided also some PowerShell commmand to configure your SharePoint (link).

  1. Start the SharePoint 2013 Management Shell.

    net start spadminv4
    net start sptimerv4
  2. Create your isolated app domain your apps, for example "apps.developement.local".

    Set-SPAppDomain "apps.developement.local"
  3. Ensure that the SPSubscriptionSettingsService and AppManagementServiceInstance services are running.

    Get-SPServiceInstance | where{$_.GetType().Name -eq "AppManagementServiceInstance" -or $_.GetType().Name -eq "SPSubscriptionSettingsServiceInstance"} | Start-SPServiceInstance
  4. Verify that the SPSubscriptionSettingsService and AppManagementServiceInstance services are running.

    Get-SPServiceInstance | where{$_.GetType().Name -eq "AppManagementServiceInstance" -or $_.GetType().Name -eq "SPSubscriptionSettingsServiceInstance"}
  5. You must specify a farm admin account under which the SPSubscriptionService and AppManagementServiceInstance services will run. This farm admin account must be an SPManagedAccount. If your farm admin is not an SPManagedAccount, you can create a SPManagedAccount with your farm admin credentials by typing the following command in the SharePoint Management Shell (You will be prompted for the farm admin domain\user and password).

    $account = New-SPManagedAccount
  6. Specify a farm admin account, application pool, and database settings for the SPSubscriptionService and AppManagementServiceInstance services.

    $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
  7. Specify your tenant name by typing the following code in the SharePoint Management Shell.

    Set-SPAppSiteSubscriptionName -Name "app" -Confirm:$false