Step 1 Create a initSID.ora (Example: initTEST.ora) file in $ORACLE_HOME/dbs/ directory.

Example: $ORACLE_HOME/dbs/initTEST.ora

Put following entry in initTEST.ora file

##############################################################

background_dump_dest=<put BDUMP log destination>
core_dump_dest=<put CDUMP log destination>
user_dump_dest=<put UDUMP log destination>
control_files = (/<Destination>/control1.ctl,/ <Destination>/control2.ctl,/ <Destination>/control3.ctl)
undo_management = AUTO
undo_tablespace = UNDOTBS1
db_name = test
db_block_size = 8192
sga_max_size = 1073741824
sga_target = 1073741824

####################################################

Step 2 Create a password file

$ORACLE_HOME/bin/orapwd file=$ORACLE_HOME/dbs/pwd<sid>.ora password=<password> entries=5

Step 3 Set your ORACLE_SID

$ export ORACLE_SID=test

$ export ORACLE_HOME=/<Destination>

Step 4 Run the following sqlplus command to connect to the database and startup the instance. 

$sqlplus '/ as sysdba'

SQL> startup nomount

Step 5 Create the Database. use following scripts.

create database test
logfile group 1 ('<Destination>/redo1.log') size 100M,
group 2 ('<Destination>/redo2.log') size 100M,
group 3 ('<Destination>/redo3.log') size 100M
character set WE8ISO8859P1
national character set utf8
datafile '<Destination>/system.dbf' size 500M autoextend on next 10M maxsize unlimited extent management local
sysaux datafile '<Destination>/sysaux.dbf' size 100M autoextend on next 10M maxsize unlimited
undo tablespace undotbs1 datafile '<Destination>/undotbs1.dbf' size 100M
default temporary tablespace temp tempfile '<Destination>/temp01.dbf' size 100M;

Step 6 Run the scripts necessary to build views, synonyms, etc.: 

• CATALOG.SQL-- creates the views of data dictionary tables and the dynamic performance views.
• CATPROC.SQL-- establishes the usage of PL/SQL functionality and creates many of the PL/SQL Oracle supplied packages.