Character in company in city (5)
I believe the answer is:
cairo
'city' is the definition.
(Cairo is an example)
'character in company' is the wordplay.
'character' becomes 'air' (I've seen this before).
'in' indicates putting letters inside.
'company' becomes 'co' (abbreviation).
'air' inserted inside 'co' is 'CAIRO'.
'in' acts as a link.
(Other definitions for cairo that I've seen before include "Egypt's capital" , "North African capital" , "Capital city on the Nile" , "Al Qahira" , "Egyptian capital" .)