Body not completely seen outside a capital city (7)
I believe the answer is:
caracas
'capital city' is the definition.
(I've seen this before)
'body not completely seen outside a' is the wordplay.
'body' becomes 'carcass' (carcass is a kind of body).
'not completely' means to remove the last letter (the word is incomplete).
'seen outside' is an insertion indicator.
'carcass' with its last letter removed is 'carcas'.
'carcas' placed around 'a' is 'CARACAS'.
(Other definitions for caracas that I've seen before include "Venezuelan capital" , "Capital city" , "South American city" , "Capital of Venezuela" , "South American capital" .)