ORA-39700: database must be opened with upgrade option

Step 1: Open with Upgrade Option

SQL> startup upgrade;

Step 2: upgrade database – it means run script $ORACLE_HOME/rdbms/admin/catupgrd.sql

SQL> @/u01/app/oracle/product/11.2.0/db_home1/rdbms/admin/catupgrd.sql;
Step 3: Shutdown database and Startup

SQL> shutdown immediate;

SQL> startup;

Step 4: Run script $ORACLE_HOME/rdbms/admin/utlrp.sql – for recompile all invalid PL/SQL packages

SQL> @/u01/app/oracle/product/11.2.0/db_home1/rdbms/admin/utlrp.sql