Use Xocde 7.3.1 and choose 'free' provisioning.
Edit 5.12.16: I went ahead and recently wrote this up:
Free provisioning*/testing on your device:
• From within Xcode 7.x (Mac only), navigate to “Xcode—->Preferences—->Accounts.” Hit the '+' icon below left to add your Apple ID. After you add your account, it will show within the main account window on the right.
• Select your account, hit the “View Details” button and wait for them to load.
• Now create the 'signing identity' used to create a provisioning profile used for device testing - Hit the “Create” button next to the 'iOS development' label. When completed, hit ‘Done’.
• Connect your device and select it as build destination via the 'active scheme' dropdown to the right of the play and stop icons.
• In target's 'General' tab/settings:
• a. Set app identifier you want for your free profile
• b. Set team id as your apple id
• c. Hit 'Fix Issue' button below the provisioning profile warning
• Run your app with your device selected.
You may have to 'fix issue' more than once - keep at it so Xcode can step thru them as needed.
Note: What you can/can't do w/free provisioning is listed here: https://developer.apple.com/support/app-capabilities/*If this is about creating an /ipa to manually hand off, select Build For Archiving under the project menu, not ‘Run’.